European shares pare losses on German data

* FTSEurofirst 300 index down 0.2 pct

* German manufacturing data helps pare losses

* BP rises on oil capture; Adidas up on upgrade

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

LONDON, June 7 (BestGrowthStock) – European shares were lower around
midday on Monday, as Hungary’s debt crisis added to existing
worries about the euro zone, though losses were pared after the
release of better-than-expected German manufacturing data.

At 1106 GMT, the pan-European FTSEurofirst 300 (.FTEU3: )
index of top shares was down 0.2 percent at 996.50 points, off
the day’s low of 982.19 but still down over 10 percent from a
mid-April peak on concern about the euro zone debt crisis.

“All the problems with sovereign debt are resurfacing,” said
Philippe Gijsels, head of research at BNP Paribas Fortis Global
Markets in Brussels.

Markets tumbled on Friday after Hungary said it could suffer
a Greece-style debt crisis, although the chairman of the
Eurogroup of euro zone finance ministers, Jean-Claude Juncker,
on Sunday dismissed those concerns and said the current level of
the euro did not worry him. [ID:nLDE65602W]

“In Hungary it’s an example of political manoeuvring, with
the new government blaming the old one, but that’s a dangerous
game, if you imply you can’t repay debt,” added Gijsels.

“More and more countries are joining the club. There’s too
much debt, and no credible way of getting rid of it. Sometimes
it seems there’s a solution, and markets rally, but then you
realise there’s no solution, and they go back down. And there’s
no unity in the ECB,” he said.

Analysts also pointed to worries about the strength of the
recovery in the United States, following disappointing labour
market data on Friday, which saw Wall Street drop to its lowest
close since February.

In Europe, telecoms were lower. Greek telecom group OTE
(OTEr.AT: ) fell 8.6 percent after saying in a bourse filing on
Monday it would propose a dividend per share of 0.19 euros to
the annual shareholders meeting on June 16, down from an initial
proposal of 0.50 euros set on Feb. 25.

Vodafone (VOD.L: ), one of the few shares to rise on Friday,
fell 1.4 percent.

But most banking stocks were higher, having earlier extended
Friday’s losses.

Banco Santander (SAN.MC: ), HSBC (HSBA.L: ), Societe Generale
(SOGN.PA: ) and UniCredit (CRDI.MI: ) all rose between 0.7 and 1.5
percent.

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For a graphic of European banks’ exposure to Hungary click

http://graphics.thomsonreuters.com/10/HN_BNKXP0610.gif

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Across Europe, the FTSE 100 (.FTSE: ) index was down 0.3
percent, Germany’s DAX (.GDAXI: ) slipped 0.1 percent and France’s
CAC 40 (.FCHI: ) was down 0.3 percent.

Spain’s IBEX (.IBEX: ) and Italy’s benchmark (.FTMIB: ) were
flat; Portugal’s PSI 20 (.PSI20: ) was up 0.1 percent.

GERMAN MACRO BOOST

Shares in the FTSEurofirst 300 recovered from early morning
lows after data showed German manufacturing orders rose 2.8
percent on the month in April, beating forecasts and adding to
signs Europe’s largest economy is on the path to durable growth.
Among individual shares, index heavyweight BP (BP.L: ) gained
2.6 percent after saying it expected a second oil containment
system would allow it to increase the amount of oil being
captured from its Gulf of Mexico spill. [ID:nN07147206]

Also on the upside, Adidas (ADSG.DE: ) gained 2.7 percent
after Deutsche Bank upgraded the sporting goods maker to “buy”
from “hold”, saying it would benefit from the weaker euro.

The single currency picked up only slightly from a four-year
low against the dollar on Monday.

Spain’s Grifols (GRLS.MC: ) fell 5.3 percent after saying it
would buy U.S.-based Talecris Biotherapeutics (TLCR.O: ), which
makes plasma-based protein therapies, for $3.4 billion in a bold
move to expand its business in blood products. [ID:nLDE6560AA]

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(Graphics by Scott Barber; editing by Simon Jessop)

European shares pare losses on German data