* FTSEurofirst 300 hits six-year closing low for third day
* Pharmas, oils, insurers, lead losers
* For up-to-the-minute market news, click on []
By Brian Gorman
LONDON, Feb 24 (Reuters) - European stocks fell for the
third straight day on Tuesday, as worries persisted about
financial sector balance sheets and the breadth and depth of the
recession.
The FTSEurofirst 300 <> index of top European shares
fell 1.4 percent to 719.38 points, hitting its lowest close
since March 2003 for the third successive day.
The broader STOXX 600 <> index fell 1.4 percent to
172.86 points, led lower by drug stocks.
U.S. consumer confidence plunged to another record low in
February, with expectations that already dire economic
conditions will continue to weaken and the jobs market will
further deteriorate. The Conference Board, an industry group,
said its sentiment index fell to 25 from 37.4 in January.
[]
U.S. house prices fell at the fastest pace on record in
December. []
Ben Bernanke, the Federal Reserve chairman, said in
testimony that unless government efforts succeed in restoring
financial stability, the recession may not end this year.
[]
"The markets are disenchanted by the policymakers' attempts
to stabilise the financial system," said Mike Lenhoff, chief
strategist and head of research at Brewin Dolphin Securities, in
London. "They're taking the view that the policymakers are still
struggling."
"Until we get some positive newsflow, which we are not
getting, it strikes me that the prevailing pressures on these
markets will remain downward."
"The recession is not just deepening, but widening."
PHARMAS FALL
Pharmaceuticals took most points off the DJ Stoxx 600 Index.
Shares in Roche <ROG.VX> fell 3.8 percent as analysts said it
will likely up its bid for the 44 percent of Genentech <DNA.N>
it does not own, after the U.S. biotech group urged shareholders
to reject the offer. []
Swiss biotech group Basilea <BSLN.S> plunged 36.8 percent
after filing a claim against U.S. partner Johnson & Johnson over
delays in launching an antibiotic to treat drug-resistant
superbugs after the approval process hit a setback in Europe.
[]
Novartis <NOVN.VX> and Sanofi-Aventis <SASY.PA> fell 1.9 and
1.7 percent respectively.
Among financials, AXA <AXAF.PA>, Europe's second biggest
insurer, fell 5.6 percent on renewed concerns over the company's
balance sheet, raising prospects of a capital increase.
Shares in Belgian banking and insurance group KBC <KBC.BR>
slipped 3.4 percent after Deutsche Bank downgraded it to ""sell"
from "hold" and cut its target price to 8 euros from 15 euros.
Swiss banks UBS <UBSN.VX> and Credit Suisse <CSGN.VX> fell
1.5 percent and 3.6 percent respectively. German insurer Allianz
<ALVG.E> lost 4 percent.
The DJ Stoxx insurance index <.SXIP> fell 3.4 percent.
Crude prices <CLc1> hovered around $38 a barrel, and most
energy shares were lower.
Total <TOTF.PA>, ENI <ENI.MI>, Royal Dutch Shell <RDSa.AS>,
Repsol <REP.MC> and Statoil <STL.OL> lost between 0.7 and 2
percent.
On the upside, Thomson Reuters <TRIL.L>, owner of Reuters
News, rose 6.6 percent, after its full-year results beat
forecasts.[]
Deutsche Borse <DB1Gn.DE> rose 1.3 percent ahead of
full-year results due later on Tuesday.
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC-40 <> were between 0.7 and 1
percent lower.
As European bourses were closing, Wall Street shares, which
fell to 12-year closing lows on Monday, were higher.
The Dow Jones <>, S&P 500 <.SPX> and Nasdaq Composite
<> were up between 1.3 and 1.7 percent.
(Additional reporting by Peter Starck in Frankfurt; editing
by John Stonestreet)
