Dubai fears push Europe shares lower, oils fall

                                
 * FTSEurofirst 300 down 0.3 percent, continuing slump
                                
 * Oil & gas producers, pharmas down
                                
 * Banks up, Carphone Warehouse rises
                                
 * For up-to-the-minute market news, click on [STXNEWS/EU]
                                
 
                                
 By Christoph Steitz
                                
 FRANKFURT, Nov 27 (Reuters) - European shares fell further
on Friday, a day after posting their biggest one-day drop in
seven months, as concerns about contagion from Dubai's debt
crisis curbed investors' appetite for riskier assets.
                                
 By 0922 GMT, the FTSEurofirst 3000 <.FTEU3> was down 0.3
percent at 984.99 points but trimmed earlier losses, having been
down as much as 1.7 percent.
                                
 The index is up 53 percent from its lifetime low of March 9
and has gained 19 percent in the year-to-date.
                                
 Japan's Nikkei <.N225> hit a 4-month closing low on Friday,
two days after Dubai, part of the oil-exporting United Arab
Emirates, said it would ask creditors of state-owned Dubai World
and Nakheel to agree to a standstill on billions of dollars of
debt. [ID:nGEE5A02FN]
                                
 "We are facing day one after the 'Dubai-shock', but
unfortunately this effect seems not to be over yet," said Roger
Peeters, strategist at Close Brothers Seydler.
                                
 "How will the U.S. market ... react on the development in
the Middle East? Perhaps the answer to this question will not be
given today."
                                
 Wall Street was closed on Thursday for the Thanksgiving
holiday, and Friday's trading session will end early at 1 p.m.
local time (1800 GMT).
                                
 
                                
 OILS FALL, CARPHONE UP
                                
 Oil and gas producers dropped, with crude oil <CLc1> down
5.4 percent. The DJ STOXX European Oil & Gas Index <.SXEP> fell
1.2 percent. BP <BP.L>, ENI <ENI.MI>, Royal Dutch Shell
<RDSa.AS>, Petroplus <PPHN.VX> and Statoil <STL.OL> were all
down 0.9 to 1.3 percent.
                                
 Pharma stocks also fell, with Sanofi-Aventis <SASY.PA>, BASF
<BASF.DE>, Roche <ROG.VX> and Fresenius SE <FREG_p.DE> down 0.2
to 1.6 percent.
                                
 On the upside, a number of banks rebounded from the previous
session's slump. Natixis <CNAT.PA>, Deutsche Bank <DBKGn.DE> and
BNP Paribas <BNPP.PA> were up 1.3 to 2.2 percent.
                                
 JP Morgan analysts said there was less concern for global
banks regarding Dubai World's direct $59 billion debt. They saw
more risk coming from spillover effects within the United Arab
Emirates with CDS spreads.
                                
 "Overall we would argue the UAE direct loan exposure risk is
to some extent over-discounted within global banks except for
some selective banks," JP Morgan analysts wrote in a note.
                                
 Britain's Carphone Warehouse <CPW.L> gained 1.6 percent
after raising its full-year earnings forecast and saying it was
on track to split in two by the end of March 2010.
[ID:nGEE5AP1US]
                                
 Across Europe, France's CAC <.FCHI>, Germany's DAX <.GDAXI>
and Britain's FTSE 100 <.FTSE> were all 0.1-0.3 percent lower.
                                
 (Additional reporting by Simon Falush in London; editing by
John Stonestreet)
((christoph.steitz@thomsonreuters.com; +49 69 7565 1269; Reuters
Messaging: christoph.steitz.reuters.com@reuters.net))