Frankfurt Dax: 5088.13 (-56.15)

German shares closed with heavy losses, hit by the weak opening on Wall Street and the overnight weakness on Far Eastern stock markets. Dealers said that market is undergoing a substantial correction and the weaker dollar is providing no support.

Paris CAC-40: 3685.83 (-97.51)

The correction in French stocks finally become more full-blooded as the US market weakness generated heavy selling, with fears that the Fed may raise interest rates at its May 19th meeting.

Milan MIBTEL: 21841 (-1498)

Italian shares plunged yesterday as a bout of panic selling gripped the bourse, while bankers and government officials sought to reassure investors that a recent bullrun was built on solid foundations.

All major companies went into full retreat on the third trading day of sustained selling. The shares of carmaker Fiat were suspended when they hit a 10 per cent down limit, while tyremaker Pirelli dropped 8.52 per cent to 5495 lire.