RTRS: Europe shares fall on economy, bank sector worries
LONDON, Nov 12 (Reuters) - European shares slid on Wednesday, led lower by banks and oils that fell on worries of more losses and a darkening economic picture, and Wall Street fretted over changes to a $700 billion financial sector bailout.
The FTSEurofirst 300 index of top European shares ended unofficially 3.4 percent lower at 853.48 points.
Credit Suisse (CSGN.VX: Quote, Profile, Research, Stock Buzz) led banks lower with an 8.8-percent fall on market talk of a large trading loss. The bank declined to comment.
French bank Natixis (CNAT.PA: Quote, Profile, Research, Stock Buzz) slid 13.5 percent after it said its core investment banking unit had a torrid time last month, while Barclays (BARC.L: Quote, Profile, Research, Stock Buzz), Standard Chartered (STAN.L: Quote, Profile, Research, Stock Buzz), Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz) and Societe Generale (SOGN.PA: Quote, Profile, Research, Stock Buzz) fell 5.2-7.5 percent.
Swiss Life (SLHN.VX: Quote, Profile, Research, Stock Buzz) tumbled 20 percent after warning on profits and ING (ING.AS: Quote, Profile, Research, Stock Buzz) fell 5 percent after posting its first quarterly loss.
U.S. Treasury Secretary Henry Paulson said he was backing away from buying troubled mortgage assets using a $700 billion bailout fund, instead favouring a second round of capital injections into financial institutions that would match private funds.
"This is bringing uncertainty into the market, creating a sense that the Treasury doesn't know what it's doing," said Philippe Gijsels, strategist at Fortis in Brussels.
But he said that markets appeared to be overreacting.
"Now people are talking of re-testing the year lows. But newsflow should improve in the next couple of weeks with the earnings season behind us and the economic calendar quite light. We should be higher by the end of the year."
Top U.S. electronics chain Best Buy Co (BBY.N: Quote, Profile, Research, Stock Buzz) slashed its fiscal 2009 profit forecast, underlining a weak picture of consumer spending.
And reflecting worries about the economy, oil fell more than 4 percent to around $56.80 a barrel. Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz), BP (BP.L: Quote, Profile, Research, Stock Buzz) and Total (TOTF.PA: Quote, Profile, Research, Stock Buzz) fell 1.5-4.5 percent.
