Frankfurt DAX: 4050.14 (-44.25)

German shares dropped to the day's lows, worried by the weaker dollar and concern about whether the market can absorb a series of recently announced capital increases. The DAX index ended 44.25 points down at 4050.14. Commerzbank dropped more than 3 per cent after news of a planned capital increase; Bayerische Vereinsbank rose as the end of a share offer crucial to a Bavarian bank merger approaches. Hypo shares slipped slightly in heavy volume.

Paris CAC-40: 2874.57 (-45.15)

The Paris Bourse fell in active trading, driven down mainly by a markedly lower dollar. The Bourse was also negatively influenced by Wall Street's weak start due to a bond market fall.

Milan Mibtel: 14543 (-134)

Italian stocks fell nearly 1 per cent as US stocks were volatile on Wall Street and the dollar slid against European currencies. Italian funds were selling telecoms stocks to make room in their portfolios.