The DAX then rebounded somewhat to show a much more modest loss of 0.15 percent in early trade.

Asian markets posted much more substantial losses following a global battering last week as concern grew that with an unprecedented US credit ratings downgrade, economies could slip back into recession.

Earlier on Monday the Group of Seven industrialised economies vowed to underpin financial stability after the European Central Bank said it would "actively" buy eurozone bonds to help ease the pressure on weak eurozone countries.

Copyright AFP (Agence France-Presse), 2010