* FTSEurofirst 300 index falls 0.2 pct in choppy trade
* High oil prices raise concerns about economic growth
* Iberdrola shares jump 11 percent on buy-out news
By Atul Prakash
LONDON, March 9 (Reuters) - European shares ended lower on
Wednesday after fresh Libya violence pushed oil prices higher
and fuelled economic growth fears.
The FTSEurofirst 300 <> of top European shares ended
0.2 percent lower at 1,144.75 points after a choppy session,
with volumes at 108 percent of the 90-day daily average.
Miners were among the biggest losers, with key base metals
falling on worries demand for raw materials could be hit and the
STOXX Europe 600 Basic Materials index <.SXPP> down 1.1 percent.
"For every $10 crude prices move higher, 0.5 percent is
knocked off global growth and the risk of a double dip recession
for many western economies becomes more realistic," said Angus
Campbell, head of sales at Capital Spreads.
"Things are just about sustainable where the current price
of oil stands, but a break higher could send the sellers
berserk," he added.
Brent crude oil <LCOc1> jumped more than 2 percent to trade
above $115 a barrel as fighting intensified in Libya, and an
OPEC delegate said it saw no need to hold an emergency meeting
to ease supply fears.
"The underlying pace of growth is still strong, but the risk
is that if oil prices keep on going up then obviously it will
strangle economic growth," said Luc Van Hecka, chief economist
at KBC Securities.
"The highest probability is for oil prices to fall back once
these tensions fade. Equities still look attractive compared to
other asset classes and in terms of valuations."
Europe's STOXX 600 index <> currently trades at 10.8
times expected earnings, below a 10-year average of 13.6,
according to Thomson Reuters Datastream. This compares with a
price-to-earnings ratio of 13.1 for U.S. S&P 500 index <.SPX>.
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC 40 <> fell 0.5 to 0.6 percent.
Ireland's ISEQ <.ISEQ>, Spain's IBEX <> and Portugal's PSI
20 <> fell 0.1 to 1.0 percent.
BANKS UNDER PRESSURE
Banks also came under pressure on renewed fears about the
peripheral debt situation in Europe, with the European banking
index <.SX7P> down 0.6 percent. Portugal's borrowing costs
soared in the auction of September 2013 bonds. []
The Portuguese government said yields were unsustainable in
the long run without Europe-wide action. There are concerns that
the country will not be able to avoid following Greece and
Ireland in requesting an international bailout.
However, European travel and leisure shares were in demand,
with the sector index <.SXTP> rising 0.9 percent. Deutsche
Lufthansa <LHAG.DE> gained 2.7 percent as it announced a bigger
than expected 2010 dividend and as steady economic recovery
boosted its bottom line.
Among individual shares, Iberdrola Renovables <IBR.MC>
surged 11 percent on news that parent Iberdrola plans to buy out
the minority shareholders of its renewables unit.
Exactly two years ago, the FTSEurofirst 300 index hit a
record low due to the worst financial crisis since the Great
Depression. The index has surged 77 percent since then, but has
struggled in the past weeks on tensions in North Africa and the
Arab world.
(Editing by Mike Nesbit)
