European shares end lower on U.S. new home sales

LONDON (BestGrowthStock) – European shares slipped on Wednesday on renewed concerns over global growth after U.S. new home sales hit a record low, with commodities and banks lower as investors stayed clear of riskier asset classes.

The pan-European FTSEurofirst 300 (.FTEU3: ) index provisionally closed down 1 percent at 1,040.85 points, having been up as much as 1,052.19 earlier, with technical charts suggesting their could be more declines over the coming days.

“We have fallen back after U.S. new home sales data and in this context, we expect the market to continue to go lower over the next week,” said Christian Stocker, strategist at UniCredit Global Research in Munich.

Miners fell in a choppy session after briefly turning higher after Australian Prime Minister Kevin Rudd said he would call a leadership ballot on Thursday, raising investors hopes the resource tax could be eased.

Anglo American (AAL.L: ), Antofagasta (ANTO.L: ), BHP Billiton (BLT.L: ), Eurasian Natural Resources Corporation (ENRC.L: ), Rio Tinto (RIO.L: ) and Xstrata (XTA.L: ) lost 1.6 to 2.7 percent.

Banks featured among the worst performers. Banco Santander (SAN.MC: ), Barclays (BARC.L: ) and HSBC (HSBA.L: ) down 1.1 to 2.8 percent.

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(Reporting by Joanne Frearson)

European shares end lower on U.S. new home sales