European shares hit lowest close since July 29

European shares fell to their lowest close in more than two weeks on Monday, as investors took profits, worrying that a recent rally was not supported by economic data. The FTSEurofirst 300 index of top European shares fell 2 percent to 921.96 points, the lowest close since July 29. The index posted its biggest one-day percentage drop since July 2.
The heavyweight banking sector took most points off the index. Banco Santander, Barclays, Credit Suisse, HSBC, UBS and UniCredit fell between 1.9 and 3.8 percent. "The market is too far ahead of the economy," said Giuseppe-Guido Amato, strategist at Lang & Schwarz. "We are not there (in recovery) yet. We have stopped the patient bleeding but the cancer is still there." But the benchmark index, which slumped 45 percent in 2008, is still up 42.8 percent from its lifetime low of March 9.
Figures from Friday showing a further deterioration in US consumer confidence overshadowed two more upbeat reports on Monday. British Land, reported last week to be a bid target, fell 3.3 percent, ahead of results on Tuesday. Insurers were also mostly lower, including France's Axa and Germany's Allianz, down 2.4 and 2.7 percent respectively. Aviva bucked the trend, up 1.6 percent, after HSBC upgraded it to "neutral", from "underweight"
In an across-the-board sell-off, there were few other gainers. Defensives such as drugs giant GlaxoSmithKline and Vodafone were among the main risers, up 0.8 and 0.4 percent respectively. Across Europe, UK's FTSE 100 index closed 1.5 percent lower; Germany's DAX and France's CAC 40 fell 2 and 2.2 percent respectively.
"Signs of anaemia in the economic recovery are catalysing some profit taking, but I don't think it is a matter of concern. You can't just expect every single boat in the sea to be lifted off by this rising tide," said Andrew Bell, head of research at Rensburg Sheppards. Worries about the world-wide economy saw crude oil slip more than 2.5 percent to less than $66 a barrel. Metals prices also fell.
Miners Anglo American, Antofagasta, BHP Billiton, Lonmin, Rio Tinto, Vedanta Resources, Xstrata fell between 3.2 and 5.6 percent. Energy companies to fall included BP, Royal Dutch Shell, Repsol, Total and StatoilHydro, down between 1 and 2.5 percent. Volkswagen ordinary shares fell 9.9 percent, with traders pointing towards speculation that Porsche may own more options in the automaker than the block controlling a 17 percent VW stake that it agreed to sell to Qatar Holding LLC on Friday. Porsche rose 3.1 percent.