European stocks end lower as banks, commodities weigh

European shares ended lower yesterday as weaker crude and metals prices hit commodity stocks and Commerzbank's $14.5 billion deal to buy Allianz's Dresdner Bank unit dragged down banking shares.

The FTSEurofirst 300 index of top European shares closed down 0.45 per cent at 1,189.35 points, slipping on the first day of the month after gaining 1.2 per cent in August, only its second positive month in the previous 10.

The pan-European index is down 21 per cent this year, hit by big losses at banks due to the credit crisis and slowing global economic growth. Miners were the top weighted sectoral loser on the index, tracking a sharp decline in metal prices.

Copper fell 2.6 per cent under pressure from gains in the dollar, rising stocks and worries about demand. Other base metals also slipped.