Commerzbank led European shares downhill after it agreed to buy Dresdner Bank from insurance group Allianz. Meanwhile, oil and metal prices lost ground, hitting resource stocks.

The FTSE Eurofirst 300 fell 0.5 per cent to 1,189.35, Germany’s Xetra Dax was flat at 6,421.80 and in France the CAC 40 slid 0.2 per cent to 4,472.13.