DAX: 3,866.84 (-125.19)

German shares fell sharply, pulled back by a weak opening on Wall Street and falls overnight on markets in the Far East.

Dealers said there was some profit-taking and that a weaker dollar weighed on the market. But some shares came off their worst levels in later trading, including Lufthansa and Telekom.

CAC-40: 2,828.41 (-43.29)

The French index fell 1.51 per cent. Dealers attributed the fall to a higher than expected upward revision to US second quarter gross domestic products which they said revived fears of an increase in US interest rates.

The fall showed the sharp sensitivity of the stock market to US data and investors lack of confidence, they said.

Mibtel: 14,070 (-99)

Italian shares started well but early gains were reversed later in the day as the US market opened weaker, dragged back by stronger than expected economic data. Olivetti shares fell more than 6 per cent to 732 lire, while Montedison was 20 lire down to L1,073.