Fears of a US interest rate rise also continued to depress shares, as did concerns over Germany's economic health. More information on European interest rates come today, after the European Central Bank's rate-setting meeting.
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SHARES fell almost 3 per cent amid uncertainties over domestic tax reform. The Xetra Dax index closed down 129.32 points at 4,668.52, with recent threats by German companies to relocate elsewhere in protest at proposed tax reform weighing on sentiment.