European stocks end down

European stock markets closed modestly lower yesterday, pausing after four straight days of gains as weaker crude prices weighed on oil majors and a profit warning from US giant Ford Motor Co dented auto makers.

Royal Bank of Scotland was among the biggest blue-chip fallers, closing down 1.7 per cent at 1,670 pence after a weekend newspaper reported the financial heavyweight was close to buying a $3 billion to $4 billion stake in Bank of China.

The FTSEurofirst 300 index of pan-European blue chips was 0.2 per cent weaker at 1,101.4 points, having hit a one-month peak on Friday.

The narrower DJ Euro Stoxx 50 index fell 0.3 per cent to 3,080.6 points.

Analysts said the dip was not surprising after a strong run in recent weeks as investors await the first-quarter earnings season for confirmation that profit growth remains on track.

"Q1 will tell us whether what we have been buying has been justified, or it will tell us it might be time to take some profits," said Akber Khan, a director of Deutsche Bank's European equity focus team.

Analysts currently expect European company earnings to grow by about 10 per cent this year as a still-strong global economy offsets the effects of a weak US dollar, high energy prices and a sluggish European economy.

"At the moment as the world keeps going along as it is, we're reasonably confident," Mr Khan said, adding that Deutsche had raised its "overweight" position on equities thanks to an improved technical outlook and the recent dip in oil prices.

US light crude fell more than one per cent to below $53 a barrel, almost 10 per cent off its record high of $58.28 reached at the start of the month.

Statoil was down 2.2 per cent, while BP closed 0.8 per cent lower after its Russian joint venture TNK-BP said its back tax bill had jumped to almost $1 billion.

"While not debilitating to the company, the substantial rise in the tax amount calls into question both TNK-BP's relationship with the government as well as the total amount the company may have to end up paying for all years," Renaissance Capital oil analyst Adam Landes said in a note to clients.