Frankfurt DAX: 5581.24 (-89)

German shares slipped lower yesterday as concern about Asia continued. The share drops in both Hong Kong and Tokyo cast a pall over the market.

BMW AG preference shares dropped more than 8 per cent after shareholders last week began exercising subscription rights to the group's rights issue. Karstadt was up on rumours that retail group Schickendanz wants to increase its stake in Karstadt.

Paris CAC-40: 4005.33 (- 45.43)

French shares fell yesterday as stock lost value in Asia and US markets and the Yen dropped once more.

But the bourse closed off its lows as investors took refuge in safe-haven stocks and snapped up some bargains.

Many dealers said they expect a correction in European equities to continue over the next two weeks. But they stressed that the underlying trend seems intact.

Milan Mibtel: 22,790 ( -347)

Italian shares closed off the day's lows as US stocks stemmed their declines on Wall Street. "It's a contained sell-off," said a trader in Milan.