Around the World's Markets: Frankfurt

GERMAN SHARES slipped back slightly, as the weakness of the dollar weighed on sentiment. The DAX benchmark index lost 0.7 per cent in quiet trading. "I don't think the market will do too much until about the middle of January, in part due to the introduction of the euro. ," said one trader.

Allianz dropped another 2.5 per cent, extending 2-day losses to nearly 6 per cent, as Deutsche Bank increased the size of its Allianz convertible bond issue by 500 m to 1.8bn euros.