* FTSEurofirst 300 index down 1.5 percent
* Bank stocks hit by euro zone peripheral debt worries
* Miners down on peripheral woes, geopolitical tensions
* For up-to-the minute market news, click on []
By Joanne Frearson
LONDON, Nov 23 (Reuters) - European shares fell to a
six-week closing low on Tuesday as concerns over Ireland's
turmoil and the possibility it could spread to other euro zone
countries intensified and Korean tensions escalated.
The pan-European FTSEurofirst 300 <> index of top
shares closed down 1.5 percent at 1,076.71 points, ending lower
for the third session in a row.
"The Irish bailout continues to cause uncertainty amongst
European investors as concerns about the potential of contagion
to other countries have increased," said Angus Campbell, head of
sales at Capital Spreads.
Investors worried that negotiations to rescue Ireland were
at risk as Prime Minister Brian Cowen rejected a call to move
forward from Dec. 7 the announcement of the 2011 budget.
An EU/IMF bailout programme depends on passing the budget,
whose fate has been in doubt after independent members of
parliament said they may vote to reject it. []
Meanwhile, worries intensified that other countries could be
next in line as debt costs for Portugal and Spain rose.
"Equity markets are going to continue to suffer and the
selling has been compounded by the geopolitical unrest in
Korea," Campbell said.
Investor sentiment was hurt early after North Korea fired
dozens of artillery shells at a South Korean island.
[]
Banking stocks continued their slide as worries over the
euro zone peripheral debt crisis weighed.
Bank of Ireland <BKIR.I> dropped 24.9 percent, while Spanish
banks BBVA <BBVA.MC> and Banco Santander <SAN.MC> fell 3.9
percent and 4.7 percent respectively.
The euro zone peripheral countries markets were under
pressure. Spain's IBEX 35 <> slipped 3.1 percent,
Portugal's PSI 20 <> fell 2.2 percent, Italy's benchmark
<.FTMIB> was 2.1 percent lower and Ireland's ISEQ <.ISEQ>
retreated 3.4 percent.
MINERS FALL
Mining stocks also featured among the worst performers on
concerns the euro zone debt crisis and rising tension between
North and South Korea could slow demand for commodities.
Vedanta Resources <VED.L>, Antofagasta <ANTO.L>, Kazakhmys
<KAZ.L> and Rio Tinto <RIO.L> were down 2.8 to 4.6 percent.
Volkswagen <VOWG_p.DE> dropped 5.5 percent as investors took
profits in the carmaker following an 11 percent rise in its
share price since the beginning of November.
"I called some clients this morning and told them to sell,"
a Germany-based trader said. "Many investors bought the share in
March/April when there was the capital increase and now they
have profits of about 100 percent."
Investor appetite for risky stocks was low, with the
VDAX-NEW volatility index <.V1XI>, one of Europe's main
barometers of investor anxiety, jumping 13.4 percent to hit a
seven-week high on fears about the euro zone debt crisis.
The higher the index the lower is investors' appetite for
risky assets.
Across Europe, the FTSE 100 <> index fell 1.8 percent,
Germany's DAX <> slipped 1.7 percent and France's CAC 40
<> went down 2.5 percent.
(Reporting by Joanne Frearson; Editing by Michael Shields)
