Around the World's Markets: Frankfurt

GERMAN shares extended Monday's falls, with a lack of direction and a weak dollar dampening buying in a market preparing for the change to the euro. The DAX closed down 0.3 per cent at 4,708.19 points. News that unemployment had risen in November also weighed heavily on the market.

Allianz tumbled 3.3 per cent on news that Deutsche Bank would issue a 1.3bn euro convertible bond exchangeable into Allianz shares, which if exercised would account for 1.6 per cent of Allianz capital.