Recovery doubts pressure European shares; BP falls

LONDON, June 1 (BestGrowthStock) – European shares fell on Tuesday,
as slowing Chinese factory output fuelled pessimism over global
economic recovery and banks slid after the European Central Bank
said euro zone lenders face another wave of potential writedown.

BP (BP.L: ) sank more than 12 percent, as its attempt to plug
an oil leak in the Gulf of Mexico failed. The firm said the cost
of tackling the spill totalled $990 million as it prepares for a
new attempt to control the flow.

By 0707 GMT, the pan-European FTSEurofirst 300 (.FTEU3: )
index of top shares shed 0.9 percent to 991.97 points, a day
after shares posted their worst monthly performance since
February 2009.

“We’ve had a fantastic run since March last year and at some
stage there was going to be a level of pullback. There is very
little reason at the moment for people to be adding more risk,”
said Justin Urquhart Stewart, director at Seven Investment
Management.

Banks were among the biggest decliners, Barclays (BARC.L: ),
HSBC (HSBA.L: ), Societe Generale (SOGN.PA: ), BNP Paribas (BNPP.PA: )
and Deutsche Bank (DBKGn.DE: ) off 0.3 to 1.9 percent.

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(Reporting by Harpreet Bhal)

Recovery doubts pressure European shares; BP falls