Frankfurt slump surprises

Frankfurt Dax: 5885.00 (-150.28)

In Frankfurt the DAX index slumped by 2.49 per cent, and slid below 6,000 points to 5,885 points. Weak sentiment in the morning turned into a negative attitude later in the day but one dealer assured that "there is psychological support at 6,000 points". But as prices fell analysts expressed surprise. The market was undermined initially by a fall by Deutsche Telekom and Deutsche Bank.

Paris CAC-40: 4139.53 (-65.88)

In Paris prices fell by 1.57 percent owing to weakness in Asia and uncertainty about the identity of the next Japanese finance minister, dealers said. One analyst said: "Fears about Asia have led investors, out of caution, to overweight their portfolios with bonds as opposed to shares. Now investors are more concerned about the effects of the crisis in Asia on the results of European companies than on the overall effects on growth."

Milan MIBTEL: 24860 (-306)

Italian shares extended their early losses but closed off the session lows as the market continued to see some selective buying.