* FTSEurofirst 300 closes 0.33 pct lower
* Data from U.S. and Europe weigh on markets
* Auto stocks rise sharply on hopes for EU stimulus package
By Sarah Marsh
FRANKFURT, Nov 26 (Reuters) - European stocks closed
slightly lower on Wednesday, snapping a 2-day winning streak as
concerns about the likelihood of a deep global recession
outweighed prospects for massive stimulus plans.
The FTSEurofirst 300 <> index of top European shares
closed down 0.33 percent at 830.58 points, after Tuesday's 0.6
percent gain and Monday's surge of nearly 9 percent -- the
second-biggest one-day percentage rise on record.
The index is down 44.6 percent so far this year, hit by the
credit crisis and the global economic slowdown.
"We have had a good two or three days .... so the markets
have to rest here," said Giuseppe-Guido Amato, investment
analyst at Lang & Schwarz.
"We had lots of economic data, all weaker than expected. But
if you see the data, you can also imagine the stock markets
should be 1 or 2 percent lower than now," he said.
Utility stocks were the worst performing sector, with GDF
Suez <GSZ.PA>, E.ON <EONGn.DE> and Gas Natural <GAS.MC> down
between 2.5 and 5.5 percent.
A slew of negative economic data on both sides of the
Atlantic underscored prospects of a severe global downturn.
Britain's economy shrank at its fastest rate since 1990 in
the third quarter as household spending fell by its biggest
amount in more than a decade, data showed. []
In the United States, data showed that orders for costly
manufactured goods plummeted in October, and consumers cut
spending at the steepest rate in more than seven years. Consumer
sentiment sagged and the monthly Chicago purchasing management
index hit its lowest level since 1982.
"The market is having real difficulty in shaking off the
fear that this recession could be the worst in living memory,"
said Andrew Turnbull, senior sales manager at ODL Securities.
Energy shares also weighed heavily on worries about slowing
demand for crude oil in developed countries. BP <BP.L>, Royal
Dutch Shell <RDSa.L> and Tullow Oil <TLW.L> shed between 1.5 and
5.8 percent.
Trading in shares of 99-year-old Woolworths Group <WLW.L>,
the sweets-to-DVDs retailer, was suspended on Wednesday as talks
to save the business from collapse continued.
FISCAL STIMULUS
However, hopes for fiscal stimulus plans partly offset fears
about the economy. Following the U.S. Federal Reserve's latest
rescue package for the housing market, the European Commission's
called on Wednesday for a EU-wide fiscal stimulus package worth
200 billion euros ($259.3 billion).
The proposed package includes 5 billion euros of extra
funding for the European car sector, which buoyed recently
battered auto stocks. Volkswagen <VOWG.DE>, Peugeot <PEUP.PA>
and Renault <RENA.PA> gained between 5.9 and 15.3 percent.
Miners also performed strongly, after China slashed interest
rates, boosting metals prices. Anglo American <AAL.L>,
Antofagasta <ANTO.L>, BHP Billiton <BLT.L> and Xstrata <XTA.L>
rise between 2.3 and 9.9 percent.
Shares in Compass Group <CPG.L> jumped 9.3 percent after the
world's biggest caterer posted a 30 percent increase in annual
profit and said it expects more companies to outsource catering
to cut costs as the economic downturn bites.
Across Europe, Britain's FTSE 100 <> and France's
CAC-40 <> were down 0.44 and 1.24 percent, while Germany's
DAX <> was flat.
(Reporting by Sarah Marsh; Additional Reporting by Atul
Prakash; editing by John Stonestreet)
