European shares fall in early trade; banks slide

LONDON, Jan 27 (BestGrowthStock) – European shares fell in early
trade on Wednesday, with banks among the biggest casualties,
after Wall Street gave up gains to finish lower overnight.

At 0806 GMT, the FTSEurofirst 300 (.FTEU3: ) index of top
European shares was down 1.1 percent at 1,011.66 points.

The index rose 0.4 percent on Tuesday, snapping a four-day
losing streak. It is up more than 56 percent from its lifetime
low of March 9.

Spain’s second-largest bank, BBVA (BBVA.MC: ), fell 4 percent
after posting a 16.1 percent decline in 2009 net profit to 4.21
billion euros ($5.9 billion) as the impact of the global
downturn forced it to make more provisions.

Other banks to fall included BNP Paribas (BNPP.PA: ), Banco
Santander (SAN.MC: ), Barclays (BARC.L: ), Deutsche Bank (DBKGn.DE: )
and UBS (UBSN.VX: ), down between 1.5 and 2.6 percent.

U.S. stocks (Read more about the stock market today. ) slipped late on Tuesday due to trepidation over
churning political and regulatory developments, offsetting solid
earnings and improved consumer confidence data. The S&P 500
(.SPX: ) closed 0.4 percent lower.

After European markets close, the Federal Reserve is
expected to announce that it is leaving interest rates
unchanged. U.S. home sales data is due at 1500 GMT.
“There are worries about the Fed phasing out quantitative
easing,” said Bernard McAlinden, investment strategist at NCB
Stockbrokers. “There are also still worries about Obama’s plans
for banks, and Chinese growth.

“We’re well into a major correction now, and this is about
as big as most corrections get. The outlook is for some sideways
trading,” he said.

Investing Tools

(Reporting by Brian Gorman)

European shares fall in early trade; banks slide