AROUND THE WORLD'S MARKETS: FRANKFURT

GERMAN SHARES fell more than 2 per cent amid renewed fears of higher interest rates in the United States and Europe. The DAX closed 2.26 per cent lower at 5,270.77 points.

Retail and utility stocks were among the few gainers as merger news buoyed the respective sectors. Retailer Metro extended its gains from Monday, when French retail giants Carrefour and Promodes announced a merger. Metro rose substantially before giving up some gains and closing 0.42 per cent firmer.