Frankfurt DAX: 6,185.02 (- 37.15)

German shares retreated from record territory yesterday as low volumes and a weaker dollar weighed on the market. "It is very quiet and there is no special news out there. Turnover is thin, but I don't think you can talk about a summer lull. No one can afford that," one dealer said.

Paris CAC-40: 4,368.91 (- 19.57)

France's CAC index had its record run interrupted, when the market found itself weighed down by a slide in France Telecom stock. This took place because the government announced a 5 per cent capital increase and the sale of between 5 and 6 per cent of the state's stake in the company.

Milan Mibtel: 25,946 (- 224)

Milan blue chip shares were at record highs yesterday, supported by the buying interest of retail clients, funds and international investors, traders said. "There is a feeling this will not be the last record high in the short term," said one dealer. Insurers, telecommunication stocks and banks commanded attention.