Europe shares dragged lower by US data, telcos

                                
 * FTSEurofirst 300 close 0.3 pct lower
                                
 * Mobile telecom stocks drop, miners gain
                                
 * Marks & Spencer shares rise on new CEO
                                
 * For up-to-the-minute market news, click on [STXNEWS/EU]
                                
 
                                
 By Christoph Steitz
                                
 FRANKFURT, Nov 18 (Reuters) - European shares closed lower
on Wednesday, dropping for a second consecutive day, as higher
mining stocks failed to offset weak U.S. macroeconomic data that
showed an unexpected fall in housing starts in October.
                                
 The FTSEurofirst 300 <.FTEU3> index of top European shares
ended down 0.3 percent at 1,027.16 points, having hit a fresh
13-month high earlier in the trading session.
                                
 The index, which slumped 45 percent last year, is up 24
percent in 2009 and has surged 59 percent since hitting a record
low in March.
                                
 The U.S. Commerce Department said housing starts fell almost
11 percent to a seasonally adjusted annual rate of 529,000
units, the lowest level since April. [ID:nN1899353]
                                
 "Building permits from the United States were weaker than
expected, but the impact was not as bad as it could have been,"
said Joerg Rahn, chief investment officer at wealth management
company Marcard, Stein & Co.
                                
 "However, on a more general note, it is truly remarkable how
unimpressed markets are at the moment. No matter whether macro
data are good or bad, it seems to be shrugged off to some
extent," he added.
                                
 Across Europe, Britain's FTSE 100 index <.FTSE> was 0.1
percent lower, Germany's DAX <.GDAXI> gained 0.2 percent and
France's CAC 40 <.FCHI> fell 0.02 percent.
                                
 
                                
 TELCOS DOWN, MINERS UP
                                
 Mobile telecommunications stocks took most points off the
index and the DJ STOXX European Telecom Index <.SXKP> was 0.8
percent lower, with Vodafone <VOD.L>, Cable & Wireless <CW.L>
and Deutsche Telekom <DTEGn.DE> down 0.6 to 3.4 percent.
Vodafone also traded ex-dividend.
                                
 On the upside, mining stocks added most points to the index,
and the DJ STOXX European Basic Resources Index <.SXPP> was up
1.1 percent. The index has soared 94 percent so far this year,
the best sectoral performance, dwarfing a 57 percent gain in the
DJ STOXX European Banking Index <.SX7P> in the same period.
                                
 Rio Tinto <RIO.L>, BHP Billiton <BLT.L>, ArcelorMittal
<ISPA.AS>, Xstrata <XTA.L> and Antofagasta <ANTO.L> all gained
between 1.6 and 4.8 percent.
                                
 Marks & Spencer <MKS.L> rose 5.9 percent, as analysts
welcome the appointment of Marc Bolland as its new chief
executive. [ID:nLI608802]
                                
 "Bolland has an extremely good track record at Morrison.
It's definitely a good appointment in our view but certainly a
surprise," says Sam Hart at Charles Stanley.
                                
 British chocolate maker Cadbury <CBRY.L> also gained 1.2
percent on news that Italy's Ferrero and U.S.-based Hershey
<HSY.N> are reviewing options over a possible bid for the
company, boosting hopes they could rival front runner Kraft
<KFT.N>. [ID:nN18112947]
 (Additional reporting by Blaise Robinson in Paris and Matthew
Scuffham in London; Editing by Jon Loades-Carter)