* FTSEurofirst 300 down 0.4 pct; hits three-week lows
* Miners under pressure as metal prices fall; banks down
* German utilities gain after election results, E.ON up
* For up-to-the-minute market news, click on []
By Atul Prakash
LONDON, Sept 28 (Reuters) - European shares hit their lowest
level in nearly three weeks on Monday, as weaker miners on the
back of falling metals prices outpaced positive multi-utility
stocks that gained ground after German election results.
The FTSEurofirst 300 <> index of top European shares
fell for a third straight session and was down 0.4 percent at
980.01 points by 0836 GMT after falling to a low of 974.85 --
the lowest since Sept. 9. It is up 18 percent this year and has
surged 52 percent since hitting a record low in early March.
Miners were among top losers, with metals prices falling on
demand concerns and a strengthening dollar, which makes
commodities costlier for holders of other currencies.
BHP Billiton <BLT.L>, Anglo American <AAL.L>, Antofagasta
<ANTO.L>, Rio Tinto <RIO.L>, Xstrata <XTA.L> and Eurasian
Natural Resources <ENRC.L> fell 1.3-2.9 percent.
Financial shares also came under pressure. Barclays
<BARC.L>, BNP Paribas <BNPP.PA>, Societe Generale <SOGN.PA> and
Credit Agricole <CAGR.PA> fell 0.9-1.5 percent.
Lloyds Banking Group <LLOY.L> and Royal Bank of Scotland
<RBS.L> shed 3.8 percent and 3.4 percent, respectively, hit by
worries over mooted rights issues and weekend comments by
British Prime Minister Gordon Brown on curbing bank bonuses.
"One can sense an air of edginess across the markets, as the
bullish run appears to have run out of steam," said John Murphy,
analyst at ODL Securities.
Across Europe, Britain's FTSE 100 index <> fell 0.3
percent and France's CAC 40 <> dropped 0.5 percent, but
Germany's DAX <> rose 0.4 percent after the results of
German elections.
German utility stocks rose after voters provided a
comfortable majority for a new centre-right government that is
widely expected to extend the life of the country's nuclear
reactors.
E.ON <EONGn.DE> added 2.5 percent and those in rival RWE
<RWEG.DE> rose 2.7 percent, making them the top gainers among
German large caps. Shares in regional utility Energie
Baden-Wuerttemberg <EBKG.DE> gained 4.3 percent.
German nuclear power plant operators are seen gaining from
the election results since parties on the left of the spectrum
including the Greens and the Social Democrats had pushed for
nuclear plants to be taken off the grid starting in 2020.
RELUCTANT TO ADD RISK
"Investors are a little bit reluctant to add to their risk
positions," said Koen De Leus, economist at KBC Securities.
"The market is going to have a very good look at
macroeconomic numbers this week. If some of these figures
disappoint, then the market is going to go down further."
Economic data due this week include U.S. PMI prices and
non-farm payrolls data, and German unemployment numbers.
Shares in Wolseley <WOS.L> surged 9 percent following
above-forecast full-year results from the plumbing supplies
firm, prompting Deutsche Bank to upgrade its rating to "buy"
from "hold".
GlaxoSmithKline <GSK.L> rose 1.3 percent after the Financial
Times reported the company has sealed a 1.5 billion euro (1.38
billion pound) deal with Brazil, guaranteeing sales of its
pneumococcal vaccine over the entire life of the product.
Belgian drugs, chemicals and plastics maker Solvay <SOLB.BR>
was down 3.6 percent in line with broader market trends. It said
on Monday it would sell its drugs unit to U.S. partner Abbott
Laboratories <ABT.N> for 4.5 billion euros ($6.6 billion) in
cash and reinvest in chemicals and plastics.
Cadbury <CBRY.L> was up 0.2 percent. A report in The
Observer newspaper said that Kraft Foods <KFT.N> was poised to
launch a hostile bid for Cadbury, valuing the British
confectionery business at around $17.6 billion.
(Editing by Mike Nesbit)
