* FTSEurofirst 300 <> index closes down 0.8 percent
* Concern over Hungary's debt problems pressure stocks
* German manufacturing data helps lift some confidence
By Harpreet Bhal
LONDON, June 7 (Reuters) - European shares fell on Monday,
as worries over debt problems in Hungary added to jitters about
fiscal health in Europe, while BP <BP.L> was pressured by a
broker downgrade and concern over the impact of its oil spill.
The pan-European FTSEurofirst 300 <> index of top
shares closed 0.8 percent lower at 990.49 points, slipping back
after earlier rising to an intraday high at 1,000.50.
The index has lost 11 percent since mid-April when fears of
a sovereign debt crisis in the euro zone prompted investors to
abandon riskier assets.
"There is a lot of nervousness in the market. On the one
hand we have the positive (German manufacturing) data, but there
is also anxiety about Hungary keeping pressure on the market,"
said Heinz-Gerd Sonnenschein, equity markets strategist at
Deutsche Postbank.
Hungary's government vowed to cut spending on Monday as it
strove to repair the damage from comments last week about a
possible Greece-style debt crisis there, but a lack of policy
detail kept markets on edge. []
Banks were among the worst off, with Barclays <BARC.L>, HSBC
<HSBA.L>, Societe Generale <SOGN.PA>, BNP Paribas <BNPP.PA> and
Deutsche Bank <DBKGn.DE> off 0.1 to 2 percent.
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For a graphic of European banks' exposure to Hungary click
http://graphics.thomsonreuters.com/10/HN_BNKXP0610.gif
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Euro zone finance ministers played down market concerns that
Hungary, which is outside the bloc, could plunge into a debt
crisis like Greece and said Budapest's troubles did not threaten
the currency area. []
Helping to support some positive sentiment on the index,
data showed German manufacturing orders jumped far more than
expected in April, with suggestions of a rise in investment
adding to signs Europe's largest economy is on the path to
durable growth. []
BP <BP.L> fell 0.7 percent after the U.S. Coast Guard said
the United States would be dealing with the spill in the Gulf of
Mexico for another four to six weeks after its ruptured well was
capped. The Coast Guard said BP was aiming to double the amount
of oil it was capturing to 20,000 barrels per day.
[]
Adding to the pressure, Goldman Sachs downgraded the oil
major to "neutral" from "buy", saying the spill would not only
incur clean-up and legal costs but could also impact the firm's
ability to do business in the U.S. and worldwide.
OTE TELECOM SLIDES
Greek telecom group OTE <OTEr.AT> fell 11.7 percent after
saying it would propose 0.19 euro dividend to shareholders at
the annual meeting on June 16, down from an initial proposal of
0.50 euros. []
Spain's Grifols <GRLS.MC> shed 8.5 percent after saying it
would buy U.S.-based Talecris Biotherapeutics <TLCR.O>, which
makes plasma-based protein therapies, for $3.4 billion in a bold
move to expand its business in blood products. []
On the upside, Adidas <ADSG.DE> gained 2 percent after
Deutsche Bank upgraded the sporting goods maker to "buy" from
"hold", saying it would benefit from the weaker euro.
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC 40 <> was down 0.6 to 1.2
percent.
(Graphics by Scott Barber; editing by Karen Foster)
