* FTSEurofirst 300 index down 1.3 pct
* Banks, commods lower
* DSM gains on Q3 improvement
By Joanne Frearson
LONDON, Sept 24 (Reuters) - European shares fell in early
trade on Thursday, with lower crude prices weighing on energy
stocks and banks under pressure.
By 0828 GMT, the pan-European FTSEurofirst 300 <>
index of top shares was down 1.3 percent at 993.12 points.
The index has soared 54 percent since tumbling to a record
low last March, but is still down 39 percent for a multi-year
peak reached in mid-2007.
"It's a dose of reality. Although there is cash out there,
investors are saying no thank you, we have gone high enough and
want to take money out of the market," said Justin Urquhart
Stewart, director at Seven Investment Management.
Banks took the most points off the index. HSBC <HSBA.L>, UBS
<UBSN.VX>, Deutsche Bank <DBKGn.DE> and Banco Santander <SAN.MC>
were down 1.3 to 2.3 percent.
Deutsche Bank <DBKGn.DE> lost 2.5 percent. The bank's Chief
Executive Josef Ackermann said in an article published in Swiss
daily Neue Zuercher Zeitung that heavier regulation would result
in lower profits for banks. His comment came ahead of a meeting
of the Group of 20 nations that will discuss how to regulate the
sector.
Energy stocks were lower as crude <CLc1> extended losses and
fell towards $68 a barrel. BG Group <BG.L>, Repsol <REP.MC>,
Cairn Energy <CNE.L> and Total <TOTF.PA> slipped 0.5 to 2.3
percent.
Mining stocks were under pressure tracking lower metal
prices on demand concerns. Copper <MCU3=LX> fell 0.8 percent,
aluminium <MAL3=LX> lost 1.4 percent and nickel <MNI3=LX> was
down 2.36 percent.
Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton
<BLT.L> and Rio Tinto <RIO.L> were 1 to 1.6 percent lower.
Across Europe, the FTSE 100 <> index was down 0.8
percent, Germany's DAX <> was 1.2 percent lower and
France's CAC 40 <> slipped 1 percent.
FED
Also weighing on the market was investor concerned that the
Federal Reserve is closer to pulling back on extraordinary
measures to inject funding to shore up the economy.
The Fed's policy-setters met and kept interest rates
unchanged, as expected, but they also said the U.S. central bank
would slow purchases of mortgage debt to extend that program's
life until the end of March. []
"The Fed did not give any surprises, but nothing positive as
well," said Bernard McAlinden, market strategist at NCB
Stockbrokers.
On the upside, Dutch chemicals group DSM <DSMN.AS> gained
2.6 percent after it said that customer demand continued to
improve in the third-quarter and it expected operating profit
from continuing operations to be double that of the previous
quarter.
Later in the session, leaders of the world's biggest
countries meet for the two-day G20 summit in Pittsburgh to seek
ways to nurture the recovery from the worst recession since the
1930s and build safeguards against future catastrophes.
[]
Investors will also watch U.S. existing home sales for
August at 1400 GMT, with economists in a Reuters survey
forecasting a 5.35 million annualized unit total versus 5.24
million annualized units in July.
Meanwhile, German business sentiment rose to its highest
level in a year in September but fell short of expectations for
a stronger rise. []
(Editing by Mike Nesbit)
