* FTSEurofirst 300 falls 1.6 percent
* Tech shares under pressure on bearish analyst comment
* Banks slip; weaker crude, metal prices hurt commodities
By Atul Prakash
LONDON, Nov 19 (Reuters) - European shares ended at a
one-week closing on Thursday as bearish analyst comment on
semi-conductor stocks hurt technology shares and falling
commodity prices pressured oils and miners.
Financial stocks also suffered heavily following a broad
sell-off, with Credit Agricole <CAGR.PA>, Credit Suisse
<CSGN.VX>, Deutsche Bank <DBKGn.DE>, UBS <UBSN.VX> and
Commerzbank <CBKG.DE> down 2.4-2.9 percent.
The FTSEurofirst 300 <> index of top European shares
ended down 1.6 percent at 1,011.71 points, the lowest close
since Nov. 10 and its third daily loss in a row as it registered
its biggest one-day percentage fall in three weeks.
Investor appetite for risky assets such as equities fell,
with the VDAX-NEW volatility index <.V1XI> rising 3.3 percent.
The higher the index, which is based on sell and buy options on
Frankfurt's top-30 stocks <0#.GDAXI>, the lower the market's
desire to take risk.
"We are missing positive triggers to move higher. When you
feel the market can't go higher, then you try it on the down
side and take profits," said Giuseppe-Guido Amato, strategist at
Lang & Schwarz in Frankfurt.
"It's possible that we see a continuation of this
(correction) on Friday, but it's quite normal. There are enough
buyers on the sidelines waiting for a trigger."
Macro-economic data on Thursday were mixed. The number of
U.S. workers filing for jobless insurance was unchanged at a
seasonally adjusted 505,000 in the week ended Nov. 14, as
expected. []
The U.S. Conference Board said its index of leading economic
indicators climbed a weaker-than-expected 0.3 percent to 103.8
in November, while the Philadelphia Federal Reserve Bank said
its business activity index rose to a two-year high in November.
[] []
Across Europe, Britain's FTSE 100 index <>, Germany's
DAX <> and France's CAC 40 <> fell 1.4-1.8 percent.
TECH SHARES SLIP, MINERS DOWN
Technology stocks lost ground after BofA Merrill Lynch cut
its 2010 growth outlook for the global semiconductor industry,
citing the potential for a correction in inventories.
Infineon <IFXGn.DE>, ASML Holdings <ASML.AS>, Nokia
<NOK1V.HE>, Ericsson <ERICb.ST> and Alcatel-Lucent <ALUA.PA>
were down 2.2-7.2 percent.
Remarks by Infineon chief executive Peter Bauer that the
company would need to boost profit margins well above 10 percent
as it seeks to generate sustainable earnings amid the current
recovery were seen as negative. []
"Sensibility is returning to the market. It is no longer
about looking for the positive side of the news, but rather
taking a step back and being a bit more critical," said
Heinz-Gerd Sonnenschein, equity strategist at Postbank.
Commodity shares came under pressure as prices of crude
<CLc1>, gold <XAU=> and base metals such as copper <MCU3>,
aluminium <MAL3> and zinc <MZN3> retreated following a rise in
the dollar. A stronger U.S. currency makes commodities costlier
for holders of other currencies and often lowers demand.
Global miner BHP Billiton <BLT.L>, Anglo American <AAL.L>,
Antofagasta <ANTO.L>, Rio Tinto <RIO.L>, Xstrata <XTA.L> and
Eurasian Natural Resources <ENRC.L> fell 2.8-5.1 percent.
Oil major BP <BP.L>, Royal Dutch Shell <RDSa.L>, BG Group
<BG.L>, Tullow Oil <TLW.L>, Repsol <REP.MC>, Total <TOTF.PA> and
StatoilHydro <STL.OL> shed 0.6-1.9 percent.
Food producers also weighed. Danone <DANO.PA> fell 4.4
percent after saying it expected medium-term like-for-like
annual sales growth of at least 5 percent, compared with a
previous forecast of 8-10 percent. []
On the upside, world No. 2 brewer SABMiller <SAB.L> rose 3.4
percent after saying it expected a second-half boost from a fall
in the cost of inputs such as barley and favourable currency
movements, when it beat forecasts with a 6 percent rise in
first-half earnings. []
(Additional reporting by Christoph Steitz; Editing by Dan
Lalor)
