* FTSEurofirst 300 index falls 0.5 pct
* Financials weak; Lloyds down 5.4 pct
* Thin trade with U.S. markets closed for holiday
By Peter Starck
FRANKFURT, Feb 16 (Reuters) - European shares fell on Monday
in thin trading, led by financial stocks, on persistent concerns
that more help for banks and more coordinated economic stimulus
packages would be needed to address the global financial crisis.
Shares in British bank Lloyds <LLOY.L> were down 5.4
percent, adding to Friday's slide of more than 30 percent on the
back of a profit warning that revived concerns it could need
more state funds or be nationalised due to deepening problems at
HBOS, which Lloyds bought last month.
Also in financials, Deutsche Bank <DBKGn.DE>, Barclays
<BARC.L>, ING <ING.AS>, BBVA <BBVA.MC> and AXA <AXAF.PA> were
all down between 2 and 2.5 percent.
"The Lloyds story is having a read-across to the rest of the
banking sector," said Richard Hunter, head of equities at
Hargreaves Lansdown.
At 0930 GMT, the FTSEurofirst 300 <> index of top
European shares was down 0.5 percent at 792.38 points. It fell
3.6 percent last week.
Falling stocks led risers by a ratio of two to one.
"There's a lot of uncertainty hanging over the markets,"
said Heinz-Gerd Sonnenschein, equity strategist at Postbank in
Germany.
"Long-term investors are still on the sidelines... There's a
very low number of trades and a very low number of market
participants," he said.
On the brighter side, Sonnenschein said he thought there was
support for the DJ EuroStoxx50 index <> of euro zone
blue-chip shares at 2,100 points.
The index was down 0.6 percent at 2,214.20 points at 0930
GMT, 5.8 percent above the six-year low of 2,086.09 points set
in intraday trading on Jan. 23.
U.S. HOLIDAY
Strategists and traders said European markets lacked clear
direction due to a U.S. holiday. Investors seemed disappointed
with the lack of specific action points from G7 finance
ministers and central bankers, who met at the weekend.
"There was not much reassurance coming out of G7," said
Seven Investment Management director Justin Urquhart Stewart.
Earlier, Asian stock markets fell as doubts intensified
about the health of the global economy. With demand for cars and
electronics waning, an unprecedented slump in exports saw
Japan's economy shrink by 3.3 percent in the fourth quarter,
marking three straight quarters of contraction and its worst
result since the 1974 oil crisis.
"The crisis has now clearly impacted private consumption and
investment activity, too. No improvement is likely short term,"
Commerzbank said in a research note.
There was some rotation into sectors less sensitive to the
economic gloom such as pharmaceuticals, with AstraZeneca <AZN.L>
up 1.6 percent and Bayer <BAYG.DE> gaining 1.1 percent.
(Additional reporting by Joanne Frearson in London, editing by
Will Waterman)
