Market Report - Europe

Frankfurt DAX: The German stock market shed almost all of the day's gains yesterday to end just shy of the 6,000-point level in floor trade, off an earlier high of 6,052.13.

The Xetra DAX, which measures all-day electronic trading, managed to end just above the 6,000 point mark at 6,000.84 points, down 18 points.

However, bank shares ended firmer with Deutsche Bank up 70 pfennigs at 148.30 deutschmarks and Dresdner Bank up DM1.80 at DM96.70. Commerzbank was 10 pfennigs higher at DM67.75.

Meanwhile, Lufthansa lost ground to close DM1.45 lower at DM53.85.

Paris CAC-40: French stocks backtracked from record highs to close lower yesterday as roaring trade was replaced by a spell of jitters following Wall Street's downward turn.

However, there were headline performances from some stocks, including motor parts manufacturer Montupet which soared 17.82 per cent to end at 329.9 francs as the market reversed its opinion of the stock, seen until recently as risky, according to one analyst.

Club Med, the holiday village operator, also benefitted from renewed market confidence following bullish comments by its chairman that Asian weakness could be more than compensated for by a recovery in European demand. The stock closed up 5 per cent at Ffr567.

Milan Mibtel: Italian shares closed lower after six days of consecutive gains as investors decided to take some profits when Wall Street slid at the open following a bigger-than-expected drop in weekly jobless claims.

Bank shares were in focus again after Banca Popolare di Novara said it had received merger proposals from five banks. BCI shares rose 2.37 per cent 12,655 lire on press reports it was in the running. The bank had no comment.

Telecom Italia Mobile and Telecom Italia appeared unmoved by Morgan Stanley's upgrade of their target price. Telecom Italia Mobile shares ended 1.22 per cent lower at L11,621 and Telecom shares rose 0.19 per cent to L14,781.