MARKET REPORT - EUROPE

Frankfurt Dax: 2998.24 (-35.22)

In Frankfurt, stocks on the computerised IBIS index added to the morning losses when Wall Street opened to register a fall of 1.35 per cent by mid afternoon.

Floor trade, which ended before New York opened, was down 1.16 per cent.

But some dealers said it was not the large scale correction many had feared.

Paris CAC-40: 2430.34 (-30.91)

French shares also fell steeply as investors, with a nervous eye on Wall Street's performance, took profits.

Milan MIBTEL: 12417 (-236)

Italian shares moved sharply lower after the further weakness in Wall Street put buyers on the defensive and kept international investors out of the market.