DAX 2469.79 (-80.74)

Germany's 30 share DAX index dropped more than 3 per cent driven down through key support levels as investors took fright at the sell off on Wall Street on Monday.

The blue chip index ended the session down 80.74 points, or 3.17 per cent, at 2469.79, its lowest close since early May. September DTB DAX futures were down 55 points at 2489 points.

Dealers said that while the skid was dramatic, they did not expect further major losses this week.

CAC-40 1989.51 (-40.00)

French shares ended a roller coaster day down almost 2 per cent, just above the day's lows, after a sharp decline in the final half hour of trading wiped out an afternoon bounce.

Mibtel 9711 (-214)

Italian financial markets pulled back from the brink as US markets steadied, giving some support to nervous share and bond markets. However, investors were still edgy over the stability of the two month old government.