Frankfurt DAX: 3,730.94 (+26.65)

German shares slipped back from their earlier highs, pressured down by a Wall Street retreat. Dealers said profit-taking ahead of the weekend as well as continuing caution over Asian markets added to the weaker tone.

Paris CAC-40: 2,696.04 (-4.62)

The CAC-40 share index closed virtually flat, with a lower bias, as market operators squared books going into yet another nervous weekend, given the volatile conditions in world markets and the escalation in the face-off between Iraq and the west.

Milan Mibtel: 14,852 (+67)

Italian shares closed below the highs after Wall Street was shaken by rising tensions with Iraq over the UN weapons inspection team.

Traders said many investors were taking advantage of any recovery in prices to sell.