* FTSEurofirst 300 index down 0.5 percent
* German business confidence falls unexpectedly in February
* Carlsberg at 17-month high; ups profit margin guidance
* Fed chairman Bernanke testimony eyed this week
By Harpreet Bhal
LONDON, Feb 23 (Reuters) - European shares edged down on
Tuesday, with weakness in banks offsetting gains in food
producers, while Carlsberg <CARLb.CO> rose after upgrading its
medium-term profit margin guidance.
By 1037 GMT, the FTSEurofirst 300 <> index of top
European shares fell 0.5 percent to 1,018.50 points, having
closed 0.3 percent lower on Monday as equities snapped a five
session gaining run.
Banks were on the backfoot, with Barclays <BARC.L>, Societe
Generale <SOGN.PA>, BNP Paribas <BNPP.PA> and Deutsche Bank
<DBKGn.DE> off 0.7 to 1.9 percent.
Commerzbank <CBKG.DE> fell 7.1 percent with the lender
expecting a difficult 2010 after posting a worse-than-expected
fourth-quarter loss, hit by weak trading results and higher loan
loss provisions. []
Investors confidence was shaken by data showing that German
business sentiment unexpectedly fell in February, according to
the Munich-based Ifo think tank, dealing a blow to the recovery
prospects of Europe's largest economy. []
Some nervousness was also expected ahead of testimony by
Federal Reserve chairman Ben Bernanke on Wednesday and Thursday,
which is expected to shed light on how soon key U.S. rates may
start to rise, after the surprise increase last week in the rate
the Fed charges banks for emergency loans. []
"Bernanke and his fellow policymakers have made it clear
that this is not the start of moving the base rates up. We have
had a rebound in GDP but that was all due to inventories and
government stimuli and if you take these out you still have an
economy that is contracting," said Koen De Leus, economist at
KBC Securities.
Later in the session, investors will look at U.S. data,
including a consumer confidence reading and the S&P/Case-Shiller
index, which gives an indication of house price trends.
Oil majors were also under pressure, with crude prices
breaking a five-day rally. BP <BP.L>, BG <BG.L>, Total <TOTF.PA>
and ENI <ENI.MI> shed 0.1 to 0.9 percent.
CARLSBERG SURGES
Among individual movers, Carlsberg rose 8.3 percent, hitting
a 17-month high after the brewer reported fourth-quarter
operating profit a touch below expectations and said it sees
2010 operating profit in line with 2009. Analysts cheered its
move to raise its medium-term operating margin forecast.
[]
Peer Heineken NV <HEIN.AS> added 2.5 percent after the
world's third-largest brewer forecast lower beer consumption in
many regions, limited price increases and few cost benefits this
year after 2009 results were broadly in line with expectations.
Among other individual fallers, Merck KGaA <MRCG.DE> fell 6.8
percent after the world's largest maker of chemicals for flat
screens gave a cautious 2010 outlook well below market forecasts
and cut its dividend reflecting uncertainty over its drugs
pipeline. []
Food producers reversed weakness from the previous session
to rise across the board. Danone <DANO.PA>, Unilever <ULVR.L>
and Nestle <NESN.XV> rose 0.2 to 1.2 percent.
Across Europe, Britain's FTSE 100 <> was flat, while
Germany's DAX <> and France's CAC 40 <> fell 0.5 and
0.2 percent respectively.
The FTSEurofirst 300 index has gained 59 percent since
hitting a low in March, but is down close to 2 percent in 2010
partly due to sovereign debt worries in euro zone peripheral
countries.
(editing by Mike Nesbit)
