European shares finished lower after a choppy trading session on Wednesday, with disappointing economic numbers forcing investors to stay cautious, while a sharp decline in crude prices put pressure on energy stocks. The FTSEurofirst 300 index of top European shares finished 0.3 percent lower at 1,084.54 points after falling to a low of 1,078.90 earlier in the session.
Energy shares topped the losers list, pressured by a decline of more than 2 percent in crude oil prices on news a pipeline operator was preparing to reopen a crude line. BP, Total and StatoilHydro shed 1 to 2.7 percent. Analysts, however, remained positive about the near term outlook after a jump in European equities this week to their highest level in more than four months. Figures showed on Tuesday that US retail sales rose in August for their largest gain in five months, while Friday's data showed that US wholesale inventories surged by the largest amount in two years in July.
Across Europe, Germany's DAX fell 0.2 percent, while France's CAC 40 dropped 0.5 percent. Britain's FTSE 100 fell 0.2 percent after closing marginally higher in the previous session and hitting a four-month closing high on Monday. The FTSEurofirst 300 hovered in a wide range of 1,078.90 and 1,088.41 points, with lower volumes exaggerating the moves, traders said. The volume on the index was 74 percent of its 90-day daily average.
In industry news, the European Union's executive unveiled a blueprint to curb or ban short-selling and tighten controls on derivatives in one of its most ambitious financial reforms since the economic crisis unfolded. Drugmakers featured among the worst performers. AstraZeneca fell 1.1 percent after it said its potential new blockbuster heart drug Brilinta faces a three-month delay in winning US approval, slicing valuable revenue-earning time off the product. Roche, Merck and Novo Nordisk down 0.1 to 1.8 percent. Next, Britain's No 2 fashion retailer, jumped 6.7 percent. The company said its market had not got any worse since early August and appeared to be stabilising as it met forecasts for first-half profit and detailed plans to grow earnings.
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