Frankfurt DAX: 5,644.22 (-45.67)

German shares closed weaker, weighed in by late trade losses on Wall Street and amid anxiety about the outcome of today's meeting between G7 deputy finance officials and Asian financial officials in Tokyo. On top of that German stock and index derivatives expired.

Paris CAC-40: 4,027.32 (-24.95)

French stocks also finished lower after a late downturn triggered by the dollar's slide below FFr6. The market spent most of the day in the black following the yen's rise to its best level in a month, but dealers said they were cautious ahead of the G7 meeting.

Fund managers warned that the market could be heading for a correction. "We could have another good week but the first cracks in the ceiling have appeared," one manger said.

Milan Mibtel: 22,778 (-389)

The Milan bourse also ended lower yesterday, brought down by futures contracts which broke through their supporting levels as Wall Street headed lower.