Frankfurt Dax: 4040.75 (-20.75)

German blue chips bounced off of Economic and Monetary Union. The 30-share DAX index recovered some losses in late bourse trade as the dollar climbed against the deutschmark and dealers said they were expecting a firmer opening on Wall Street, but Britain's comments on monetary union were exerting downward pressure across European markets.

Paris CAC-40: 2946.71 (-11.31)

The Paris market closed lower, with trading dominated by the first day's dealing in France Telecom. The return of AGF - a takeover target from Generali - was the other highlight of an otherwise dull day.

Milan MIBTEL: 15801 (+74)

Italian stocks could rise as much as 10 per cent by the year's end as short-term bond yields fall during the countdown to Europe's single currency, traders and analysts have said.