*European shares extend losses into third day
*FTSEurofirst 300 down 1.5 percent
*Oils, miners weak
*BT leads strong telecom sector
By Tyler Sitte
FRANKFURT, Nov 13 (Reuters) - European shares fell in
morning trade on Thursday, putting them on track for a third
straight day of losses as commodity stocks and banks declined,
more than offsetting gains in BT <BT.L> and autos.
At 1046 GMT, the FTSEurofirst 300 <> index of top
European shares was 1.5 percent lower at 840.89 points, after
slipping more than 3.4 percent in the previous session.
The index has lost about 41 percent this year, hit by the
credit crisis and resulting economic slowdown.
Oils weighed heaviest on the benchmark, as crude <CLc1> fell
below $56 a barrel. Royal Dutch Shell <RDSa.AS> fell 2.4 percent
and BP <BP.L> slid 4.1 percent.
Mining stocks followed metals prices lower. BHP Billiton
<BLT.L>, Anglo American <AAL.L>, Vedanta Resources <VED.L>,
Xstrata <XTA.L>, Antofagasta <ANTO.L> and Rio Tinto <RIO.L>
fell between 0.8-3.0 percent.
"Most of the company (earnings) numbers continue to be
depressing. Asia and the U.S. closed lower and it appears that
bargain-hunting is one of the few things helping support the
market," said Andreas Huerkamp, equity strategist at
Commerzbank.
Huerkamp said European shares were at a critical stage,
nearing the lows of October.
"Should we push through these support levels, a bigger fall
could be on the horizon," he said.
TELECOMS LEAD GAINERS
The leading gainer was BT Group <BT.L>, which added 7.8
percent after second-quarter revenues rose and the group said it
would cut its workforce by 10,000 by the end of its financial
year.
Vodafone < VOD.L>, Deutsche Telekom < DTEGn.DE> and France
Telekom <FTE.PA> were up 2.2-2.9 percent.
The auto sector was also strong, with Daimler <DAIGn.DE> up
2.4 percent, BMW <BMWG.DE> 2.6 percent stronger and Peugeot
<PEUP.PA> gaining 4.4 percent.
Traders attributed the gains to an overnight rise in U.S.
car stocks as the U.S. government weighs an emergency bailout
for domestic automakers. General Motors <GM.N>, Ford <F.N> and
Chrysler LLC are seeking $25 billion as their cash burn rates
rise.
Banks were also stronger, with Unicredit < CRDI.MI> up 4.54,
and Banco Santander < SAN.MC> gaining 3.47 percent.
Technology shares fell after chip giant Intel Corp <INTC.O>
cut its fourth-quarter revenue forecast by about 14 percent
citing weak global demand across all its products, indicating
the economic crisis is set to hurt computer sales over the
holiday season and beyond.
Infineon <IFXGn.DE> was down 2.2 percent.
Across Europe, the FTSE 100 index <> was down 1.7
percent, the French CAC 40 <> was down 0.8 percent, and the
German DAX <> lost 0.55 percent.
(Additional reporting by Brian Gorman; editing by John
Stonestreet)
