New York's nerves the tone

Frankfurt DAX: 2,841.05 (-49.95)

All European markets were hit by the jitters in Wall Street which opened lower and pushed up long term bond rates. The Frankfurt market retreated sharply but was off lows as Wall Street stabilised.

Hoechst was down but was firmer than the trend after the company made a buy out bid for French Roussel UCLAF.

Paris CAC 40: 2,213.28 (-38.12)

French shares suffered heavy losses at the close. Like German shares, the market was unsettled by the New York market which continued under pressure as treasury stocks weakened.

Sentiment has been nervy since last Friday's dive following Fed chairman Mr Alan Greenspan's comment on over exuberant markets.

Milan Mibtel: 10,226 (-1.15%)

Italian shares ended an easier session sharply lower, following Wall Street's initial losses and the weakness in the US bond market.

"It was a day of just following other foreign markets in a market lacking impetus and a direction of its own," said one trader.