* FTSEurofirst 300 index closes down 0.7 pct
* Banks fall; Lloyds gains after rights issue
* Commods track crude, metal prices lower
By Joanne Frearson
LONDON, Nov 24 (Reuters) - European shares closed lower on
Tuesday after data showed the U.S. economy grew at a slower rate
than forecast in the third quarter and home prices in the United
States rose less than expected in September.
The pan-European FTSEurofirst 300 <> index of top
shares closed 0.7 percent lower at 1,016.66 points after rising
to a high of 1,025.17 earlier in the session.
The index has gained 57 percent since falling to a record
low in early March and is up 22 percent for the year.
"There has been some mixed economic data and the market has
taken a more pessimistic view on it. Wall Street is going down
with Europe in pursuit," said Philippe Gijsels, strategist at
Fortis Bank.
"The market has been a little bit volatile but that is also
probably because volumes are quite low. The U.S. is about to go
into its Thanksgiving holiday weekend, so there are big swings
in the market and that is what you are typically seeing today."
The U.S. economy grew at a slower pace than forecast in the
third quarter, while Standard & Poor's/Case-Shiller indexes
showed home prices rose less than expected in September.
[] []
But, U.S. consumer confidence edged higher in November after
an unexpected drop in October, with fewer consumers expressing
doubt about a worsening jobs market, according to a report.
[]
Banks featured among the biggest losers. HSBC <HSBA.L>, BNP
Paribas <BNPP.PA>, Societe Generale <SOGN.PA>, UBS <UBSN.VX> and
Credit Suisse <CSGN.VX> were down 1.9 to 3.2 percent.
LLOYDS GAINS
But Britain's Lloyds Banking Group <LLOY.L> gained 2.6
percent after it priced its record 13.5 billion pounds ($22.3
billion) rights issue at 37p per share, a smaller-than-expected
discount, as it taps its shareholders for cash to avoid costly
state support. []
Energy stocks were under pressure as crude <CLc1> slipped to
$76 a barrel. BG Group <BG.L>, BP <BP.L>, Royal Dutch Shell
<RDSa.L> and Total <TOTF.PA> were down 0.3 to 0.5 percent.
Mining stocks retreated as metal prices slipped. Copper
<MCU3=LX> was down 0.7 percent and nickel <MNI3=LX> fell 0.7
percent.
Antofagasta <ANTO.L>, BHP Billiton <BLT.L>, Eurasian Natural
Resources Corporation <ENRC.L>, Rio Tinto <RIO.L> and Xstrata
<XTA.L> were 0.4 to 2.9 lower.
"The market is nervous and lacks conviction so it tries to
take its clue from the data releases," said Klaus Wiener, head
of research at Generali Investments.
"And that will be the blueprint for the next couple of weeks
-- that we have good days followed by weaker days. To get out of
this we need more convincing evidence on one or the other side,"
he added.
On the upside, investors favoured the safety of defensive
stocks. Drugmakers were in demand, with Novartis <NOVN.VX> and
Roche <ROG.VX> up 0.8 percent and 0.7 percent, respectively.
Across Europe, the FTSE 100 <> index and Germany's DAX
<> were both down 0.6 percent and France's CAC 40 <>
was up 0.8 percent.
(Additional reporting by Atul Prakash; Editing by Erica
Billingham)
((joanne.frearson@thomsonreuters.com; +44 207 542 2773,
Reuters
Messaging:joanne.frearson.thomsonreuters.com@reuters.net))
