* FTSEurofirst 300 index down 1 pct
* Energy, banking shares weigh
* Mining stocks track firmer metal prices
By Joanne Frearson
LONDON, Nov 30 (Reuters) - European shares fell in early
trading on Monday, led lower by oil producers and financial
stocks, as concerns about the impact of a debt default in Dubai
continued to put pressure on the equity market.
By 0946 GMT, the pan-European FTSEurofirst 300 <>
index of top shares was down 1 percent at 989.44 points after
rising 1.2 percent on Friday. It has gained 54 percent since
falling to a record low in March and is up 19 percent this year.
Banks featured among the worst performers. Societe Generale
<SOGN.PA>, Lloyds Banking Group <LLOY.L> and Barclays <BARC.L>
retreated 1.1 to 3.6 percent.
However, Morgan Stanley analysts said European banks'
exposure to potential problems in Dubai was limited and the
falls by shares might have been too harsh.
"The market is a bit nervous still. There is a general
distrust in the rally that the markets had on Friday and the
Dubai issue is still rumbling away in the background," said Jim
Wood-Smith, head of research at Williams de Broe.
"It is also a very busy week for economic data, particularly
in the United States, and in the past month numbers have been
slightly mixed. The year-end is coming up and a lot of investors
are starting to book profits."
The United Arab Emirates offered banks emergency support on
Sunday, the first steps to ease fears that a looming debt
default by two of Dubai's flagship firms could derail the global
economic recovery.
But the move to inject liquidity into Dubai's banks by the
central bank of the Gulf Arab state, together with promises by
neighbouring city-state Abu Dhabi to provide selective support
to Dubai companies, was seen as by analysts as the bare minimum.
[]
Across Europe, the FTSE 100 <> index was down 0.5
percent, Germany's DAX <> was 0.7 percent lower and
France's CAC 40 <> was down 0.9 percent.
OILS WEIGH
Energy shares were also on the downside as crude oil prices
<CLc1> hovered below $77 a barrel. BG Group <BG.L>, BP <BP.L>
and Royal Dutch Shell <RDSa.L> were down 1 to 1.7 percent.
Shares in RWE <RWEG.DE> fell 1 percent after the company's
chief financial officer told a German newspaper that the utility
will use the proceeds from the sale of its remaining stake in
American Water <AWK.N> to cut debt instead of paying a special
dividend.
On the upside, miners were supported by firmer metal prices,
with copper <MCU3=LX> up 0.6 percent and aluminium <MAL3>
rising 1 percent. Anglo American <AAL.L>, Eurasian Natural
Resources <ENRC.L> and Lonmin <LMI.L> were 1 to 1.7 percent
higher.
Some analysts said market sentiment might improve in the
coming days.
"The general sentiment around the Dubai debt crisis is that
it will be contained," said Bernard McAlinden, market strategist
at NCB Stockbrokers.
Investors awaited the U.S. Institute for Supply
Management-New York business activity numbers at 1330 GMT,
Chicago PMI data at 1445 GMT and U.S Midwest manufacturing data
at 1700 GMT, after European markets close.
U.S. stock index futures were slightly higher, with futures
for the S&P 500 <SPc1>, Dow Jones industrial average <DJc1> and
the Nasdaq 100 <NDc1> up 0.02 to 0.2 percent.
(Reporting by Joanne Frearson; Editing by Hans Peters)
((joanne.frearson@thomsonreuters.com; +44 207 542 2773,
Reuters
Messaging:joanne.frearson.thomsonreuters.com@reuters.net))
