* FTSEurofirst 300 index down 1 percent
* DuPont update weighs on sentiment, hits U.S. futures
* EDF top percentage loser
By Joanne Frearson
LONDON, Dec 4 (Reuters) - European shares fell by midday on
Thursday as investors digested rate cuts from the European
Central Bank and the Bank of England and a bearish update from
U.S. chemicals group DuPont <DD.N>.
By 1325 GMT, the FTSEurofirst 300 <> index of top
European shares was down 1 percent at 821.45 points. The
FTSEurofirst 300 index is down 46 percent for the year.
The European Central Bank cut interest rates by 75 basis
points, its biggest ever move as inflation plummets and the euro
zone economy sinks deeper into recession.
But DuPont's forecast of a fourth-quarter loss, which hit
U.S. index futures, overshadowed the interest rate move.
"DuPont says it sees a fourth quarter loss against a street
estimate of a profit -- that's pushed the market down as it is a
big Dow component. The rate cut was more or less in line," said
a trader.
The ECB move takes its main refinancing rate to 2.50
percent, its lowest in nearly 2-1/2 years and marks the third
cut in barely two months amidst signs that the financial crisis
is biting hard into the real economy.
"It's very welcome, and I think there's much more in the
pipeline, and that's good news for equity markets, but meanwhile
the grim reminder of poor economic numbers will be with us for
many more months," said Mike Lenhoff, chief strategist at Brewin
Dolphin.
The European Union's statistics office, Eurostat, confirmed
its earlier estimate that the economy of the 15 countries using
the euro shrank 0.2 percent quarter-on-quarter in July-September
after a 0.2 percent fall in the previous three months.
Bank of America's Holger Schmieding said: "There is no
surprise. Consumption is flat, investment down, government
expenditure up and exports not much of a help. Of course, it's
just a prelude to a serious recession as two of the months, July
and August, were before the real crisis erupted."
The Bank of England cut interest rates to 2 percent taking
borrowing costs to their lowest in more than half a century,
amid signs the economy is heading for a deep recession.
"Interest rates are ... highlighting the very serious
situation that the UK economy is in," said Howard Archer, chief
UK economist at IHS Global Insight.
French power group EDF <EDF.PA> was the top loser on the
index, falling 4.8 percent after it said the building costs for
its EPR new generation nuclear reactor in Flamanville would be
20 percent higher than previously estimated.
Financials reversed earlier gains, although stocks within
the sector were mixed.
Banco Santander <SAN.MC>, Royal Bank of Scotland <RBS.L> and
BNP Paribas <BNPP.PA> were down 2.1-5.4 percent.
Credit Suisse <CSGN.VX> surged 4.4 percent after its CEO
said that it does not foresee any circumstances in which it
would need any state help. []
The group also announced it was cutting another 5,300 jobs,
as it revealed it made a net loss of about 3 billion Swiss
francs in October and November.
Energy stocks were also in the red with crude <CLc1> down
2.1 percent. Royal Dutch Shell <RDSb.L>, BP <BP.L> and Tullow
Oil <TLW.L> were 1-2 percent lower.
However, BG Group <BG.L> was up 3.25 percent after BP <BP.L>
on Wednesday agreed to an asset swap with the UK gas producer.
[]
Across Europe, the FTSE 100 index was 1.3 percent down,
Germany's DAX was down 0.4 percent and France's CAC 40 was down
0.9 percent.
(Editing by Victoria Bryan)
