* FTSEurofirst 300 index 1.2 pct lower
* Banks, miners, autos weigh on index
* Energy stocks benefit from higher oil prices
By Christoph Steitz
FRANKFURT, Dec 11 (Reuters) - European shares were lower
early on Thursday, pressured by banks, miners and autos, as
worries over the health of the global economy resurged and
uncertainties over the U.S. auto package weighed.
By 0948 GMT the pan-European FTSEurofirst 300 <> index
was down 1.05 percent at 851.19 points, snapping a three-session
winning run. The index has lost 43.5 percent this year, battered
by a credit crisis that has helped suck several economies into
recession.
"Trading has dried up a bit," said Heinz-Gerd Sonnenschein,
equity strategist at Postbank in Bonn, Germany.
"The U.S. car package has already had its effect on stocks
and now trading is relatively quiet," he added.
The U.S. House of Representatives approved a rescue plan
legislation on Wednesday to help embattled U.S. automakers, but
the plan has to be approved by the Senate where prospects for
passage appeared grim.
BMW <BMWG.DE>, Peugeot <PEUP.PA> and Fiat <FIA.MI> were down
1.7 percent to 3.7 percent.
Heavyweight banks took the most points off the index, with
Royal Bank of Scotland <RBS.L>, Commerzbank <CBKG.DE> and
Societe Generale <SOGN.PA> down between 2 and 4.4 percent.
But Fortis <FOR.AS> jumped 20 percent after reports the
Beglian government no longer rules out handing its 11.6 percent
stake in French bank BNP Paribas <BNPP.PA> to Fortis.
BNP Paribas, whose shares were down 1.3 percent, declined to
comment, while no one at Fortis <FOR.BR> could immediately
comment.
European Central Bank President Jean-Claude Trichet said the
world was not yet out of the financial storm and that government
bank rescue deals must be temporary. []
The mining sector was the worst performing sector after
industrial metals fell on concerns of slowing demand amid a
worsening economic outlook.
Antofagasta <ANTO.L>, BHP Billiton <BLT.L> and Anglo
American <AAL.L> shed between 2.8 and 4.9 percent.
GLOOMY CORPORATE OUTLOOK
Negative corporate news also weighed on the market,
especially on retailers.
Shares in Zara fashion store owner Inditex <ITX.MC> dipped
0.3 percent after its nine-month net profit missed estimates at
the bottom line. Rival Hennes & Mairitz <HMb.ST> fell 1.8
percent.
Finland's top magazine paper maker UPM-Kymmene Oyj
<UPM1V.HE> said on Thursday its fourth-quarter operating profit
is expected to be below the same quarter a year ago after sales
slowed more than expected. Shares in UPM were down 7.8 percent.
Within the sector, Stora Enso <STERV.HE> shed 7.1 percent
and M-real <MRLBV.HE> dropped 6.1 percent.
Heavyweight energy stocks were outstanding gainers as oil
rose above $44 a barrel, after adding more than 3 percent
overnight on signs that Saudi Arabia has slashed January
supplies ahead of next week's OPEC meeting.
BP <BP.L>, BG Group <BG.L> and Tullow Oil <TLW.L> were up
between 1.2 percent and 11.5 percent.
Tullow was also boosted by its annoucement on new oil finds
in Ghana and Uganda.
Investors braced for U.S. jobless claims later in the day.
"Much focus will lie on the U.S. jobless claim figures later
today," said investment analyst Giuseppe-Guido Amato, investment
analyst at Lang & Schwarz said.
"In addition, everyone is waiting for what the Federal
Reserve will do at next week's meeting," he added.
Across Europe, the FTSE 100 <> index was down 0.8
percent, the German DAX <> index was down 1.6 percent and
France's CAC <> index was down 1.2 percent.
(Reporting by Christoph Steitz and Sarah Marsh; Editing by Hans
Peters)
(christoph.steitz@thomsonreuters.com; +49 69 7565 1269, Reuters
Messaging:christoph.steitz.thomsonreuters.com@reuters.net)
