Deutsche Bank drags European shares down;Nokia up

* FTSEurofirst 300 falls 0.4 pct

* Deutsche Bank drags banks down on capital raising

* Nokia up on new CEO

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

By Brian Gorman

LONDON, Sept 10 (BestGrowthStock) – European shares fell early on
Friday as reports that Deutsche Bank (DBKGn.DE: ) plans to raise
capital sparked worries about the whole banking sector, while
Nokia (NOK1V.HE: ) rose after replacing its chief executive.

At 0837 GMT, the FTSEurofirst 300 (.FTEU3: ) index of top
European shares was down 0.4 percent at 1,078.06 points after
rising 1 percent in the previous session to a four-month closing
high.

Deutsche Bank fell 4.9 percent after sources said it is
considering a capital increase of up to 9 billion euros ($11.43
billion) to bolster its balance sheet as Basel capital
requirements are finalised.

Other banks to fall included Commerzbank (CBKG.DE: ), Credit
Agricole (CAGR.PA: ) and Societe Generale (SOGN.PA: ), down between
1.3 and 3.4 percent.

“Deutsche is the strongest and it’s going first — who’s
behind them?,” said Philip Isherwood, equity strategist at
Evolution Securities in London. “And there’s the uncertainty
ahead of the weekend and whether Basel III is ratified, and on
what sort of time banks have to rebuild finances.”
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Graphic on European banks’ capital raising:

http://r.reuters.com/cyw42p
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Mobile phone maker Nokia rose 5.6 percent after it hired
Stephen Elop, the head of Microsoft’s (MSFT.O: ) Business
Division, to replace its chief executive.

Across Europe, Britain’s FTSE 100 (.FTSE: ), Germany’s DAX
(.GDAXI: ) and France’s CAC40 (.FCHI: ) fell between 0.2 and 0.5
percent.

UTILITIES FALL

Spain’s Gas Natural (GAS.MC: ) fell 3.7 percent after French
utility GDF Suez (GSZ.PA: ) sold its entire 5.01 percent stake
through a block trade for a total of 540 million euros ($685.1
million).

French utilities Suez Environnement (SEVI.PA: ) and Veolia
Environnement (VIE.PA: ) fell 3.2 and 3.1 percent respectively
after being downgraded by BNP Paribas.

Novo Nordisk (NOVOb.CO: ) gained 2.1 percent after it said
Britain’s cost-effectiveness watchdog would back the Danish
drugmaker’s newest diabetes drug Victoza in 1.2 mg doses for the
treatment of type 2 diabetes.

Stainless steel maker Outokumpu (OUT1V.HE: ) rose 2.6 percent
after Morgan Stanley raised its rating, citing strong Chinese
demand, low inventory levels and potential nickel price upside.

The European benchmark FTSEurofirst 300 is on course for a
gain of more than 1 percent over the week, having risen 3.6
percent in the previous week. It is up barely 3 percent in 2010.
“The valuations the market is trading at are amply
discounting the risk of double dip (recession),” said Isherwood.

The Euro STOXX 50 (.STOXX50E: ), the euro zone’s blue-chip
index, fell 0.3 percent to 2,766.11 points, still above its 50
percent Fibonacci retracement of a fall from an April high to a
May low at 2,737.62 points.

(Graphic by Vincent Flasseur; Editing by Erica Billingham)

Deutsche Bank drags European shares down;Nokia up