By Amanda Cooper
LONDON, April 10 (Reuters) - European shares eased for a
third day on Thursday, ahead of two major central bank rate
decisions, led by declines in the banking and mining sectors.
BHP Billiton <BLT.L> shares fell 1.8 percent after the
company said it was unaware of any plans by China to buy shares
in it. Other mining shares followed suit, with Antofagasta
<ANTO.L> and Rio Tinto <RIO.L> falling 1 percent each.
By 0745 GMT, the FTSEurofirst 300 index <> of top
European shares was down 0.2 percent at 1,306.80 points.
The European Central Bank and the Bank of England deliver
their decisions on interest rates later in the session.
The BoE is widely expected to cut UK rates by a quarter
point to 5.0 percent, while the ECB is expected to keep euro
zone rates at 4.0 percent, citing persistent inflationary
concerns.
"(The focus) will certainly be the wording of the European
Central Bank statement. That is clearly going to be key," said
Heino Ruland, a strategist at FrankfurtFinanz.
"People just want to have a feeling for whether the
hard-liners in the ECB do get a touch softer, and the
hard-liners are, by and large, the Germans."
The ECB has constantly reiterated its mandate to keep
inflationary pressures under control, even if the risks to
growth are skewed to the downside, which equity investors have
taken to mean no rate cuts will be forthcoming.
It delivers its decision at 1145 GMT but, barring any
surprise moves in rates, investors will focus more on the press
conference at 1230 GMT to get a feel for the central bank's
thinking on the likely course of monetary policy.
"The ECB is widely expected to leave rates unchanged at 4
percent. With inflation at 3.5 percent, we may see ECB President
(Jean-Claude) Trichet adopting a tougher stance," said ING
analysts in a note.
BANKS DRAG AGAIN
The FTSEurofirst 300 has lost about 13 percent this year,
weighed down largely by a slide in shares of financials, many of
which have racked up billions of dollars in losses linked to the
deteriorating U.S. housing market.
The bank sector was the largest drag on the broader market
early on Thursday. Credit Suisse <CSGN.VX> was down 1 percent,
while BNP Paribas <BNPP.PA> fell 0.6 percent and Royal Bank of
Scotland <RBS.L> lost 0.5 percent.
Deutsche Bank's Josef Ackermann will attend a meeting in
Washington on Friday with Group of Seven officials and top
financial firm executives to discuss ways to avert a financial
crisis.
Shares in British Energy <BGY.L> were among the top positive
influences on the broader market, rising 4.3 percent after
sources close to the situation said German utility RWE <RWEG.DE>
made an indicative all-cash offer of close to 700 pence per
share to buy the nuclear power company. RWE shares fell 1.5
percent.
Both companies declined to comment.
Oil was the top-performing sector, mirroring a 2 percent
rise in crude oil futures <CLc1> to $112 a barrel after a sharp
fall in U.S. crude stocks.
BP <BP.L> rose 1 percent, Royal Dutch Shell <RDSa.AS> gained
0.5 percent, while ENI <ENI.MI> rose 0.3 percent.
Total <TOTF.PA> traded flat after Le Figaro newspaper said
Russian regions were claiming up to $170 billion from the French
oil group in a legal case.
Among the largest negative pulls on the market were Daimler
<DAIGn.DE> which fell 3.1 percent, and Volvo <VOLVb.ST>, which
fell 4.7 percent after trading ex-dividend.
(Editing by David Hulmes)
