* Oil shares gain as crude rises
* Banks, automobiles fall as earnings disappoint
* Daimler lowers full-year revenue, profit forecasts
By Joanne Frearson
LONDON, Oct 23 (Reuters) - European stocks closed slightly
lower in choppy trade on Thursday as losses in banks and
automobiles eclipsed gains in oil and defensive shares.
The FTSEurofirst 300 <> index of top European shares
ended 0.1 percent lower at 872.72 points, having earlier been as
low as 845.75.
Banks topped the loser board. Credit Suisse <CSGN.VX>
dropped nearly 4.2 percent after the group made a 1.7 billion
Swiss franc trading loss in the third quarter and warned the
fourth quarter would be tough. []
Peers Banco Santander <SAN.MC>, Standard Chartered
<SOGN.PA> and UBS <UBSN.VX> were between 2.5-4.8 percent lower.
The DJ Stoxx European banking index <.SX7P> was down 4.2
percent at 199.7 points, after falling to 194.2, its lowest
level since 1997.
In the automobile sector Daimler <DAIGn.DE> fell 1.3 percent
as it lowered its full-year revenue and profit forecast after
third-quarter operating profit plunged by two-thirds.
[]
"The market did not like Daimler results. Daimler is very
exposed to the high end market which is falling off a cliff in
the U.S.. It is a reiteration of just how grim the economic
backdrop is a the moment," said Philip Lawlor, a strategist at
Nomura.
Fiat <FIA.MI> shed 0.5 percent. The Italian car maker's
chief executive, Sergio Marchionne, told analysts at a
conference call that market declines are in excess of the
group's expectations. []
Industrial engineering groups were under pressure as Swiss
company ABB <ABBN.VX> slumped 18.45 percent after reporting
weaker-than-expected net profit and orders for the third quarter
as customers hestitated about investing in infrastructure.
[]
French engineering firm Alstom <ALSO.PA> ended down nearly
10.5 percent.
Spanish wind turbine maker Gamesa <GAM.MC> dropped 5.8
percent as investors fretted about its business outlook and
decision to temporarily halt some production.
Mining stocks also contributed to big losses in Europe as
copper <MCU3> earlier touched a low of $3,820 per tonne, its
lowest since October 2005.
Rio Tinto <RIO.L>, BHP Billiton <BLT.L>, Xstrata <XTA.L> and
Anglo American <AAL.L> were down between 2.75-9 percent.
Across Europe, the FTSE 100 <> index was up 1.2
percent, Germany's DAX <> was down 1.1 percent and
France's CAC 40 <> was 0.4 percent higher.
ENERGY STOCKS GAINS
Oil giants were the major gainers in Europe as the crude
price <CLc1> gained 2.7 percent ahead of an OPEC meeting on
Friday and investors went bargain hunting.
BP <BP.L>, Royal Dutch Shell <RDSb.L> and Total <TOTF.PA>
were up between 1.5-5.6 percent.
Investors also sought out the safety of defensive stocks
with food producer Nestle <NESN.VX> near the top of the leader
board, up 3.35 percent after nine-month sales beat forecasts.
"Nestle has stepped up today and showed us how a classic
food producer can offer us defensive properties. This mirrors
exactly what we have been seeing in the market for the last
three or four months," said Lawlor.
"Investors are now becoming more focused on defensive stocks
and I expect this is going to be the trend for the next few
weeks," added Lawlor.
Unilever <ULVR.L>, Danone <DANO.PA> and Cadbury <CBRY.L>
were 1-3.7 percent higher.
Defensive pharmaceutical group Sanofi-Aventis <SASY.PA> was
up 0.6 percent despite the European authorities' request to
temporarily suspend the marketing authorisation of obsesity drug
Acomplia.
(Editing by David Cowell)
