* FTSEurofirst 300 falls 0.8 percent
* Banks drop on renewed worries about losses
* Oil stocks add most to index, despite oil price drop
By Christoph Steitz
FRANKFURT, Dec 17 (Reuters) - European shares closed lower
on Wednesday as concerns about further losses at major banks
persisted and grim data renewed worries about the economic
outlook.
The FTSEurofirst 300 <> index of top European shares
closed down 0.8 percent at 828.53 points, as initial enthusiasm
over the Federal Reserve's interest rate cut faded.
The FTSEurofirst 300 has fallen more than 45 percent in
2008, hurt a by a credit crisis that has led several major
economies sliding into recession.
Banks took the most points off the index, with BNP <BNPP.PA>
sliding 17.2 percent after its investment banking unit suffered
an 11-month loss, hit by rocky capital markets and exposure to
an alleged $50 billion fraud by U.S. financier Bernard Madoff.
Deutsche Bank <DBKGn.DE> fell 8.8 percent amid market talk
of a possible fourth-quarter loss on investment writedowns. The
bank declined to comment.
The DJ Stoxx European banking sector index <.SX7P>, the
worst performing sectoral index this year, lost 4 percent. HSBC
<HSBA.L>, Societe Generale <SOGN.PA> and Natixis <CNAT.PA> were
down between 5.8-11.9 percent.
"Weaker company data are back in focus," said Heinz-Gerd
Sonnenschein, equity strategist at Postbank in Bonn, Germany.
"The news about BNP is the main trigger regarding European
banks, while Morgan Stanley's results only seem to seem to have
a marginal impact," he added.
Across Europe, Britain's FTSE 100 <> closed up 0.35
percent, while Germany's DAX <> ended down 0.5 percent and
France's CAC-40 <> down 0.3 percent.
As European markets closed, major U.S. bourses <> <.SPX>
<> were down between 0.3 and 0.4 percent.
BIG JUMP IN UK JOBLESS
Grim data provided further evidence of economic weakness.
The number of Britons out of work and claiming benefit rose
for a tenth consecutive month in November and by the largest
amount since March 1991, data showed. []
UK retail sales fell at their fastest annual pace in at
least a quarter of a century in early December as the key
Christmas season got off to a dismal start. []
In addition, Ireland's retail sales registered the biggest
year-on-year drop in over 24 years in October, showing a
deepening recession, shattered consumer confidence and job
worries taking their toll. []
The DJ Stoxx European retail sector index was down 0.5
percent.
Analysts said the Federal Reserve's move on Tuesday to cut
rates to a range of zero to 0.25 percent was just one in a long
list of policy responses and unlikely to make much difference on
its own.
"It's symbolic that we have gone to zero, that's it. Am I as
a company going to act any differently? No is the answer," said
John Haynes, strategist at Rensburg Sheppard Investment
Management.
"There are too many big things going on for any individual
big thing to make much of a difference."
Oil and gas producers added most points to the index,
despite crude oil <CLc1> sliding about 5.3 percent, after OPEC
announced a record supply cut that dealers said would not be
enough to counter slumping world energy demand.
BP <BP.L>, StatoilHydro <STL.OL> and BG Group <BG.L>
advanced between 1.6 and 3.2 percent.
(Additional reporting by Sitaraman Shankar and Sarah Marsh;
editing by Elaine Hardcastle)
