Frankfurt remains cautious

DAX: 2680.75 (-22.24)

The Frankfurt stock market fell well below the psychological threshold of 2700 points due mainly to the bond market's weakness. The DAX index shed 0.82 per cent on the day to end at 2680.75 points as the market remained in a cautious mood before today's publication of US industrial production prices for September.

CAC-40: 2135.63 (-11.08)

French shares closed sharply lower in line with the poor start in New York and the surprise decline in US unemployment claims. With the blue-chip CAC-40 index down 11.08 points at 2135.63, investors were now switching their attention to today's US data for further clues on interest rate prospects.

Mibtel: 9902 (-46)

Italian shares ended weaker after a lacklustre session but recovered from the day's lows after Bank of Italy governor, Antonio Fazio, said interest rates could fall more swiftly if the government's 1997 budget is fully implemented.