(Fixes Reuters Instrument Code for HBOS in paragraph 9)
* Banks lead losers; UBS falls on media report of losses
* Oil near $137 a barrel weighs on broader market
* Energy stocks gain from oil price, airlines worst hit
* FTSEurofirst 300 down 0.48 percent
By Rebekah Curtis
LONDON, June 9 (Reuters) - European shares dipped on Monday,
dragged into the red by banks and after a sell-off in U.S. and
Asian stock markets as equities around the globe felt the pain
of red-hot oil prices.
The FTSEurofirst 300 index <> fell 0.48 percent to
1,277.73 at 0924 GMT. U.S. shares fell 3 percent on Friday and
Japan's Nikkei <> shed more than 2 percent on Monday after
data showed a sharp rise in the U.S. unemployment rate and after
oil prices zoomed above $139 a barrel on Friday.
"In the short term there are some big hurdles to overcome,"
said Henk Potts, equity strategist at Barclays Stockbrokers.
"The fact that the oil price seems to be running out of
control, the fact that financial firms continue to write off
money and that economic data suggests that the global economy
continues to slow down."
U.S. crude oil dipped but held near $138 after soaring $11
on Friday.
"That was a truly shocking number for market participants.
The fact that oil could rise as much as $11 in a single day is
extraordinary," Potts said.
Among banks, UBS <UBSN.VX> fell 2.3 percent after a
newspaper reported that it could make a loss of up to 4 billion
Swiss francs in the second quarter. UBS declined to comment.
Banks were also in focus after The Wall Street Journal
reported on its website on Sunday that Lehman Brothers Holdings
Inc <LEH.N> is close to raising more than $5 billion and is set
to report a loss of more than $2 billion in the second quarter.
The DJ Stoxx European banks index <.SX7P> shed 0.8 percent.
Across the continent Deutsche Bank <DBKGn.DE> fell 1.6 percent,
Societe Generale <SOGN.PA> lost 0.6 percent and HBOS <HBOS.L>
went down 1.5 percent.
Royal Bank of Scotland <RBS.L> ticked higher after it
achieved a 95 percent uptake to its rights issue, leaving
underwriters to place the remaining stock. []
Around Europe, Britain's FTSE 100 <> index added 0.1
percent, helped by 1 percent gains in energy groups BP <BP.L>
and Royal Dutch Shell <RDSa.L>, while Germany's DAX <>
fell 0.1 percent and France's CAC 40 <> added 0.1 percent.
AIRLINES DRAG
Airline stocks were hit by the high oil price, with
Lufthansa <LHAG.DE> down 1.6 percent, British Airways <BAY.L>
down 1.7 percent and Air France-KLM <AIRF.PA> down 2.3 percent.
Other losers included German truck maker MAN <MANG.DE>,
which fell 3.8 percent, and Volvo <VOLVb.ST>, which fell 3
percent, after UBS cut the stocks to "sell" from "neutral".
But Siemens <SIEGn.DE> added 1.3 percent after CFO Joe
Kaeser said he was "relatively pleased" with turnover in the
third quarter of Siemens's 2007/2008 fiscal year to Sept. 30.
[]
Corporate Express <CXP.AS> ticked higher after U.S. office
supplies retailer Staples Inc <SPLS.O> acquired 9.51 percent of
the company, its 1.7 billion euro ($2.65 billion) acquisition
target and peer. Staples made the filing with Dutch market
regulator AFM on June 4, the regulator said. For more double
click on []
