Continued turmoil in the Russian market cast a shadow over activity, although there was some relief that the Dow and Asian markets levelled off after losses registering losses in the last two trading sessions.

Frankfurt

Shares bounced back after an opening mark-down in early automated trade, although activity remained dominated by caution.

Dealers said worries about the Russian financial crisis and the weakness of the yen were set to make investors even more cautious than they generally are after a long weekend.

The DAX index was 5.24 points lower at 5,562.23 at 1021 local time. Paris

French stocks opened higher, with investors still upbeat about local economic conditions.

Speculation continued about more restructuring in key industrial sectors of the French economy.

News of a large US pharmaceutical merger lifted shares in firms such as Rhone Poulenc and Sanofi.

Technology shares were hit by news that US computer group Intel was pushing back the delivery schedule for its next generation microprocessor.

Lower earnings forecasts for Total and Elf Aquitaine meant shares in the oil sector saw some selling activity.