Arsenal manager Arsene Wenger felt his side showed the response that was asked of them after their abject performance against Manchester United last weekend, even if they might have let a two-goal slip against Schalke.

Theo Walcott and Olivier Giroud had given Arsenal a 2-0 lead after 26 minutes, but Klaas-Jan Huntelaar, on the stoke of halftime, and Jefferson Farfan netted for the home side to ensure a share of the spoils.

"For us it was important first of all not to lose and if possible to win," Wenger said. "We managed the first part, not the second one. I felt that overall we played reasonably well, but dropped physically in the second half.

"The regret we have is that we conceded the goal just before halftime and we missed the chance at the end of the game. I think the two, of course, have a big impact on the result overall. Schalke never gave up and worked hard.

"I believe we have shown a good response to Saturday's game and you feel the team is getting better. I think in one month, if we continue to develop, we will be there."

Walcott had a chance in the final kick of the game to make it 3-2, but saw his weak effort, while through on goal, saved by Schalke goalkeeper Lars Unnerstall. However, despite the miss, the 23-year-old was Arsenal's brightest player, and justified his spot in the starting XI.

"Walcott did very well today and was one of our best players," Wenger added. "People forget he was injured and has just come back. We know that he is a great player.

"He had a positive attitude and was fresh as well. He was the only one you always felt could make a difference and it was no coincidence he had the chance in the final minute."

Arsenal are second in Group B with seven points from four matches, while Schalke lead the table on eight points. Olympiakos defeated Montpellier 3-1 to close the gap to Arsenal to one point, and Wenger believes the group is wide open, with any of three capable of going through to the knockout stages.

"It's open," the Frenchman said. "We are of course in a position where we want to win our home game. If we win, we have a 50 per cent chance of going through because Schalke play Olympiakos here.

"They are in a position where they have absolutely to win that game as well. It will of course depend on our result first against Montpellier and then we will see what happens here. It could go to last game, we could, with luck, do it in the next game. Anyway, we are in a position where we must win against Montpellier."

Meanwhile, Schalke coach Huub Stevens was proud of his side's display, which saw Schalke batter the Gunners for 25 minutes in the beginning of the second half, eventually leading to the equalizer from Farfan. "I have to compliment my team for recovering from a two-goal deficit -- we reacted brilliantly," Stevens said. "Before we conceded the two goals, we produced the best football we have played all season.

"Then, suddenly, you are two goals behind. Our comeback was impressive, however. Thankfully we made it 2-1 just before halftime. That, psychologically, was a big advantage for us."