London's FTSE 100 index dipped 0.12 per cent to 5498.46 points, Frankfurt's DAX 30 slid 0.86 per cent to 6036.64 points and the Paris CAC 40 slipped 0.72 per cent to 3131.87. Milan shed 0.12 per cent and Madrid fell 0.48 per cent.
In foreign exchange trade, the European single currency eased to $1.3429, compared with $1.3438 late in New York yesterday.
Global markets and the euro had rocketed on Wednesday as six major central banks, led by the US Federal Reserve, pumped liquidity into the financial system to prevent a second credit crunch linked to the eurozone debt crisis.
In a surprise move yesterday the central banks of the United States, the eurozone, Britain, Japan, Canada and Switzerland said they would cut the cost of providing dollars to banks.
The action by the central bank is a direct counter-attack to the tensions in the interbank market which have continued to worsen as a consequence of the eurozone crisis and stresses in the banking sector," said Rabobank analyst Jane Foley.
"The strong boost to risk appetite has been maintained overnight with Asian stock markets higher across the board (and) euro/dollar holding most of its gains."
In response to the coordinated action, London had leapt 3.16 per cent, Frankfurt surged by 4.98 per cent and Paris soared 4.22 per cent in value on Wednesday, while Madrid and Milan won 3.96 and 4.38 per cent respectively.
And the euro had spiked as high as $1.3533 - which was the highest level since November 22.
Wall Street shot four per cent higher overnight after the central banks joined hands to ensure commercial banks would not be undermined by market worries over the eurozone crisis.
The arrangement allows the central banks to lend dollars to commercial banks that might be finding it hard to borrow directly from other banks.
They said they would reduce the interest rate on this operation by half a percentage point from December 5 until February 1, 2013.
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