CORRECTED – European shares fall as U.S. GDP, Fed decision eyed

(Corrects fifth paragraph to say Fed decision will be on
monetary not fiscal stimulus)

* FTSEurofirst falls 0.2 pct, on track for monthly gain

* Miners weaker as metal prices fall

* For up-to-the-minute market news, click on [STXNEWS/EU]

By Brian Gorman

LONDON, Oct 29 (BestGrowthStock) – European shares fell slightly
early on Friday with miners weaker on lower metals prices and
traders cautious ahead of third-quarter U.S. GDP data and the
Federal Reserve’s statement on quantitative easing next week.

At 0825 GMT, the FTSEurofirst 300 (.FTEU3: ) index of top
European shares was down 0.2 percent at 1,083.24 points, after
rising 0.4 percent in the previous session.

The index is on course for a gain of more than 2 percent for
the month of October.

Metals prices fell, as the dollar strengthened. Miners to
fall included Antofagasta (ANTO.L: ), Anglo American (AAL.L: ), Rio
Tinto (RIO.L: ) and Xstrata (XTA.L: ), down between 1.3 and 2.2
percent.

Later in the session, investors’ focus will turn to
third-quarter U.S. gross domestic product (GDP) data for an
indication of the strength of the recovery in the world’s
biggest economy, a factor the Fed will take into account in
making a decision next week on further monetary stimulus.

“There is uncertainty ahead of the Fed statement for sure,”
said Bernard McAlinden, investment strategist at NCB
Stockbrokers in Dublin.

“There’s a feeling the market maybe has over-priced in QE
(quantitative easing). You’ve had half-decent data in the United
States. I think the Fed will announce QE. It’s a question of how
much and the nature of what they do.”

He added that political uncertainty, ahead of next week’s
U.S. mid-term elections, was also keeping some investors on the
sidelines.

Energy companies rose as crude prices (Clc1: ) remained
relatively high, despite some profit-taking on Friday. Prices in
October traded mostly between $80 and $85, up from between $72
and $80 in September. U.S. oil demand was stronger in August
than previously estimated, the U.S. Energy Information
Administration said on Thursday. [ID:nN28207273]

BP (BP.L: ), Royal Dutch Shell (RDSa.AS: ) and BG (BG.L: ) rose
between 0.7 and 0.9 percent while Total was 0.1 percent lower
after third-quarter earnings. [ID:nLDE69R1P0]

Across Europe, Britain’s FTSE 100 (.FTSE: ), Germany’s DAX
(.GDAXI: ) and France’s CAC40 (.FCHI: ) fell between 0.1 and 0.2
percent.

SANDVIK FALLS

Sandvik (SAND.ST: ) fell 5.7 percent after the tool and
machinery maker reported a smaller-than-expected rise in
third-quarter earnings, blaming adverse currency swings, while
order bookings also just lagged expectations.

British Airways (BAY.L: ) fell 3.2 percent, even as it
reported its first profit in two years, with traders citing
profit-taking after a strong run. [ID:nLDE69S09J]

Norwegian oil services company Petroleum-Geo Services
(PGS.OL: ) rose 2.8 percent after reporting slightly
above-forecast third-quarter core earnings. It said activity in
the seismic market was picking up.

Spanish bank Popular (POP.MC: ) rose 2.2 percent after it
reported nine-month net profit ahead of analyst expectations.
[ID:nLDE69R1YA]

A U.S. government report, due at 1230 GMT, is expected to
show gross domestic product expanded at a 2.0 percent annual
rate as consumer spending accelerated and the trade deficit
narrowed, compared with a 1.7 percent pace in the second
quarter, according to a Reuters survey.
(Editing by Karen Foster)

CORRECTED – European shares fall as U.S. GDP, Fed decision eyed