* FTSEurofirst 300 index down 2.1 pct on day, and month
* Banks fall as U.S. mixed economic data weighs
* Commodities slip as crude, metals prices retreat
By Joanne Frearson
LONDON, Oct 30 (Reuters) - European shares fell sharply on
Friday on mixed U.S. data and as traders booked profits while a
key index reversed its monthly rising trend for the first time
since June.
The pan-European FTSEurofirst 300 <> index of top
shares closed down 2.1 percent at 976.46 points after hitting
1,002.60 points earlier.
The index, up more than 51 percent from its lifetime low in
early March, closed out October down 2.1 percent after gaining
in the previous three months.
"I think today a lot of people are settling up positions for
the end of the month. A lot of people are using yesterday's
gains as an opportunity to close out profits at a higher level,"
said Joshua Raymond, market strategist at City Index.
"Potentially next week it is going to be a crucial for the
market and could help determine how the market finishes for the
rest of the year. We have got the MPC rate decision, the ECB,
the FOMC and non-farm payrolls on Friday. A lot of people are
settling up positions and focusing towards next week," he said.
The market was knocked after U.S. consumer sentiment slipped
this month, though business activity in the U.S. Midwest
expanded in October to the highest level since September 2008.
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Banks retreated from earlier gains and took the most points
off the index. Banco Santander <SAN.MC>, BNP Paribas <BNPP.PA>
and Deutsche Bank <DBKGn.DE> were down 3.1 to 4.3 percent.
However, Lloyds Banking Group <LLOY.L> gained 1.2 percent,
benefiting from plans to raise capital as an alternative to a
government-backed scheme to insure bad debts, prompting Credit
Suisse and Exane BNP Paribas to up their ratings.
COMMODITIES UNDER PRESSURE
Energy stocks featured among the worst performers as crude
<CLc1> fell back 3.1 percent. BG Group <BG.L>, BP <BP.L>, Royal
Dutch Shell <RDSa.L> and Total <TOTF.PA> were down 2.4 to 3.4
percent.
Miners were under pressure as metal prices slipped. Copper
<MCU3=LX> was down 2.6 percent, aluminium <MAL3=LX> fell 2
percent and nickel <MNI3=LX> lost 2.4 percent.
Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton
<BLT.L>, Eurasian Natural Resources Corporation <ENRC.L>, Rio
Tinto <RIO.L> and Xstrata <XTA.L> were 3.3 to 6.8 percent lower.
Alcatel-Lucent <ALUA.PA> slumped 10.6 percent after it
posted a 12th straight quarterly loss in the third quarter and
expects at least three more, even with a modest recovery in the
telecoms gear market next year. []
"It will be more difficult for markets to rally further
now," said Bernard McAlinden, investment strategist at NCB
Stockbrokers.
"You're not going to get the same positive surprises in
economic news. The U.S. GDP was good news on the day (Thursday),
but the markets will remain worried about (monetary) stimulus
withdrawal."
Drugmakers were in demand. Shire <SHP.L> gained 4.7 percent
after it said third-quarter revenue beat expectations as strong
growth from its new drugs helped offset continued declines from
the loss of patent protection on hyperactivity pill Adderall XR.
[]
Its peers Novartis <NOVN.VX> and Elan Corporation <ELN.I>
were up 0.7 and 4.9 percent, respectively.
Across Europe, the FTSE 100 <> index was down 1.8
percent, Germany's DAX <> was 3.1 percent lower and
France's CAC 40 <> was down 2.9 percent.
(additional reporting Brian Gorman; Editing by David Cowell)
