Europe shares fall for 3rd day to 2-mth closing low

LONDON, May 6 (BestGrowthStock) – European shares fell sharply for
the third consecutive session on Thursday to a more than
two-month closing low, as fears of a contagion from Greece’s
debt crisis rattled investors’ confidence.

Stocks were also pressured after the European Central Bank
President Jean-Claude-Trichet said the central bank did not
discuss the option of buying euro zone government bonds during
its meeting where it kept interest rates on hold at 1.0 percent.
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The pan-European FTSEurofirst 300 (.FTEU3: ) unofficially
closed 1.4 percent lower at 1,008.93 points, the lowest closing
level since Feb 26. The index climbed as high as 1,031.52 in a
choppy session.

“We’ve had quite a pronounced correction and it is entirely
appropriate given where the market was. A high degree of
complacency had been manifest in the market as investors simply
pursued the Q1 earnings story,” said Jeremy Batstone-Carr, head
of research at Charles Stanley in London.

The banking sector was the top faller, with Barclays
(BARC.L: ), Societe Generale (SOGN.PA: ), Banco Santander (SAN.MC: )
and BBVA (BBVA.MC: ) down 3.5 to 6.7 percent.

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(Reporting by Harpreet Bhal)

Europe shares fall for 3rd day to 2-mth closing low