* FTSEurofirst 300 closes 0.01 pct higher
* Shire leads Pharmaceuticals higher
* Deutsche Boerse rises on cost cuts
By Brian Gorman
LONDON, March 24 (Reuters) - European shares closed flat on
Wednesday, with Shire <SHP.L> leading pharmaceuticals up as it
gained from a competitor's problems, and as the market shrugged
off a Fitch downgrade of Portugal's sovereign debt.
The FTSEurofirst 300 <> index of top European shares
rose 0.01 percent to 1,072.54 points, a new 17-month closing
high, having earlier sunk as low as 1,064.65.
The European benchmark is up more than 66 percent from its
lifetime low of March 9, 2009.
Shire <SHP.L> rose 2.1 percent, after gaining as much as 3.2
percent to hit an all-time high, as ongoing manufacturing
problems at U.S. rival Genzyme <GENZ.O> boosted prospects for
Shire's enzyme replacement treatments.
GlaxoSmithKline <GSK.L>, AstraZeneca <AZN.L>, Novartis
<NOVN.VX> and Novo Nordisk <NOVOb.CO> rose between 0.6 and 3.2
percent.
Several banks fell, after Fitch cut Portugal's debt rating
by one notch to AA-. []
The move came as concerns over Greece's debt situation
remained and a day before a European Union summit.
BBVA <BBVA.MC>, HSBC <HSBA.L>, Danske Bank <DANSKE.CO> and
Millennium BCP <BCP.LS> slipped between 0.2 and 2.2 percent.
Banco Santander <SAN.MC> fell 2.5 percent on speculation the
bank was guiding down on its Brazilian loan growth target in
London, traders said. Santander said the targets were unchanged.
"We kind of knew the Portugal downgrade was coming, so the
markets weren't worried, but that is indicative of the high
level of complacency in the markets," said Andy Lynch, fund
manager at Schroders.
He added: "You don't know how the future is going to play
out, but you do know that interest rates are going to stay low,
and you can borrow to invest."
The <.VIX> index, a measure of investor anxiety, rose 6.7
percent, up from a 22-month low.
Lynch said: "The low level of the VIX we've seen also
doesn't seem right. Government deficits are still a problem. The
way to play it is to go for defensives."
DEUTSCHE BOERSE GAINS
Among individual shares, Deutsche Boerse <DB1Gn.DE> gained
4.6 percent after it announced more cost savings measures.
Fiat <FIA.MI> rose 3.9 percent after newspaper reports said
it is planning higher than expected job cuts of 5,000 in Italy
and may spin off its car activities sooner than thought this
Summer. Fiat declined to comment on the reports.
A stronger dollar and weaker metals prices failed to stop
some miners rising.
Anglo American <AAL.L> rose 0.9 percent after JP Morgan
upgraded it to "overweight". Rio Tinto <RIO.L> rose 1.4 percent.
The FTSE 100 <> index ended the day 0.1 percent higher.
Also in the UK, finance minister Alistair Darling cut his
forecast for government borrowing, in his annual budget on
Wednesday, while housebuilders rose after he raised the stamp
duty threshold for first-time buyers.
Persimmon <PSN.L>, Barratt Developments <BDEV.L> and Bellway
<BWY.L> all rose between 3.1 and 5.6 percent. ,
Across Europe, Germany's DAX <> rose 0.4 percent and
France's CAC 40 <> lost 0.1 percent, while Portugal's share
benchmark <> fell 1 percent.
U.S. economic news was mixed. Sales of newly built U.S.
homes fell for a fourth straight month to a record low in
February, but another rise in new orders for durable goods
offered hope that the economic recovery remained on course.
[]
Wall Street was lower around the time European bourses were
closing. The Dow Jones <>, S&P 500 <.SPX> and Nasdaq
Composite <> were down between 0.3 and 0.5 percent.
(Editing by Simon Jessop)
