* FTSEurofirst 300 closes 1.5 percent lower
* UniCredit falls as CEO resigns; other banks slip
* Miners among the few gainers as metals prices rise
By Brian Gorman
LONDON, Sept 22 (Reuters) - European shares fell to their
lowest close in more than two weeks on Wednesday, after the U.S.
Federal Reserve made a downbeat assessment of the health of the
economy.
The FTSEurofirst 300 <> index of top European shares
fell 1.5 percent to 1,066.46 points, the lowest close since
Sept. 7. The index is still up 3.9 percent in September.
"The market had been anticipating positive news on
quantitative easing from the Fed, but there was no definitive
statement," said Mark Bon, fund manager at Canada Life in
London. "There has been some profit-taking as the market had
gone back near the top of its trading range."
Bon added that the market could break out of its range on a
"continuation of M&A stories, positive earnings stories, and
positive bond market developments in peripheral Europe".
The heavyweight banking sector was the biggest drag on the
index. UniCredit <CRDI.MI>, Italy's biggest bank, fell 4 percent
after chief Executive Alessandro Profumo quit in a row over
Libyan stake-building.
Banco Santander <SAN.MC> fell 2.9 percent after Credit
Suisse analysts downgraded the stock's rating to "neutral" from
"outperform", on concerns that the bank was "now so big that
structural growth is likely to decline, and it may face
marginally declining returns".
Other banks to fall included Credit Suisse <CSGN.VX> and UBS
<UBSN.VX>, down 2.4 and 2.9 percent, respectively.
On Tuesday the Fed opened the door to more monetary easing
by saying it was ready to provide more support for the economy,
highlighting the depth of the central bank's worry over the
sluggish recovery. []
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For a graphic showing breakdown in the correlation between
equities and bond yields: http://r.reuters.com/kan84p
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"People have decided to focus on the Fed's assessment of the
economy, not on the fact that it is determined to step in if
needed. The bottom line is: Things are not improving on the
macro front," said David Thebault, head of quantitative sales
trading at Global Equities.
The Euro STOXX 50 <>, the euro zone's blue-chip
index, fell 1.5 percent to 2,752.77 points, moving back below
its 200-day moving average and falling towards strong support at
2,737.62, the 50 percent retracement of the fall to a May low
from an April high.
MINERS GAIN
Miners were among the few gainers, as a weaker dollar helped
copper prices to rise and gold hit another record high following
the Fed's statement.
Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton
<BLT.L>, Randgold <RRS.L>, Rio Tinto <RIO.L> and Xstrata <XTA.L>
rose between 2.1 and 3.1 percent.
But the weaker dollar failed to stop crude prices falling
back after data showed U.S. stockpiles rose last week.
Oil majors Total <TOTF.PA>, BP <BP.L> and Royal Dutch Shell
<RDSa.L> fell between 1.9 and 2.1 percent.
Germany's DAX index <> and France's CAC 40 <>
fell 1.1 and 1.3 percent, while Spain's IBEX <> sank 2.1
percent. Portugal's benchmark <> outperformed, falling 0.6
percent, against a backdrop of strong demand for 750 million
euros ($997 million) of sovereign bonds on offer.
[]
Britain's FTSE 100 index <> ended the day just 0.4
percent lower, helped by its raft of miners.
Wall Street was lower around the time European bourses were
closing. The Dow Jones <>, S&P 500 <.SPX> and Nasdaq
Composite <> were down between 0.5 and 1 percent.
(Additional reporting by Blaise Robinson; Editing by Will
Waterman)
