* FTSEurofirst 300 index down 0.3 pct
* Banks weigh on Madoff exposure fears
* Commodities gain as metal, crude prices rise
By Joanne Frearson
LONDON, Dec 15 (Reuters) - European shares ended lower in
choppy trade on Monday on worries about a deep recession but
falls among banks were offset by a rise in commodities tracking
firm crude and metal prices.
The pan-European FTSEurofirst 300 <> index of top
European shares ended down 0.3 percent at 827.25 points after
being up as much as 843.89 points.
"The market was higher initially on expectations that the
car industry would be rescued or thrown a temporary life line.
But we are still getting poor economic data coming out," said
Bernard McAlinden, market strategist at NCB Stockbrokers.
"The New York manufacturing index was weaker again in
December and some earning figures are coming out negative. There
are worries the market has not yet priced in all of the concerns
about the economies and earnings," he said.
Investors were also nervous ahead of the decision of the
U.S. Federal Reserve interest rate meeting on Tuesday.
Jim Wood-Smith, head of research at Williams de Broe, said:
"We have the decision of the Federal Open Market Committee
meeting tommorrow with the consensus being that interest rates
will be cut by 50 basis points in the U.S."
"But there is a lingering fear that maybe the Fed has gone
as far as it is going to go in cutting interest rates," said
Wood-Smith.
Banks took the most points off the index as a growing list
of financial groups acknowledged exposure to the alleged $50
billion fraud surrounding Wall Street trader Bernard Madoff.
BNP Paribas <BNPP.PA>, HSBC <HSBA.L> and Royal Bank of
Scotland <RBS.L> were down 1.2-10.05 percent.
"Madoff is another reason for write-offs among financial
institutions. This has not done any good for the sector. While
it has not been a big shock, it's just another negative," said
McAlinden.
Trade in Fortis <FOR.AS> shares were suspended, pending a
statement on the financial impact of a court ruling suspending a
state-led deal to dismantle Fortis and sell Belgian assets to
BNP Paribas. []
Irish banks jumped after the country's government unveiled
plans to bolster their capital by injecting up to 10 billion
euros into financial institutions. []
Anglo Irish Bank <ANGL.L> and Bank of Ireland <BKIR.L> were
up 9 percent and 11.4 percent respectively.
HBOS <HBOS.L> rose 4.7 percent after the group won
shareholder approval for its acquisiton by Lloyds TSB <LLOY.L>
on Friday. []
Across Europe, the FTSE 100 index was down 0.07 percent,
Germany's DAX was 0.2 percent lower and France's CAC 40 was down
0.9 percent.
COMMODITIES GAIN
Energy stocks were the biggest risers after crude <CLc1>
gained 2.5 percent, boosted partly by expectations OPEC will
agree on a deep supply cut this week.
BG Group <BG.L>, BP <BP.L>, Royal Dutch Shell <RDSb.L> and
Total <TOTF.PA> were 1.1-3.4 percent higher.
Mining stocks were also big gainers although the price of
copper <MCU3=LX> fell back from an earlier rise of more than 3
percent.
Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton
<BLT.L>, Rio Tinto <RIO.L> and Xstrata <XTA.L> were 1.6-4.9
percent higher.
(Editing by David Cowell)
(joanne.frearson@thomsonreuters.com; +44 207 542 2773,
Reuters Messaging:joanne.frearson.thomsonreuters.com@reuters.net)
