Frankfurt DAX: 3659.27 (-71.81)

Frankfurt's DAX index fell almost 2 per cent after breaking through support at 3700, triggering additional selling on program trades. A wave of corporate earnings reports, some above market expectations, did little to stop the rot. Market players said there was no end to the prevailing pessimism in sight.

Paris CAC-40: 2696.60 (-3.11)

Paris share trading resumed after a four-day break, but a fall of more than 1.5 per cent in the key CAC-40 index soon banished any remnants of the holiday mood. However, with the early falls on Wall Street widely anticipated, French shares clawed back some of their early losses.

Milan Mibtel: 14678 (-139)

The Italian market regained a substantial portion of the early losses after the Mibtel index hit a low on the day of 14531. Leading shares were lower, the exception being Assucirazioni Generali which jumped 2.2 per cent on a "buy" note from an overseas brokerage.