European shares end lower; oils, autos weigh

European shares ended lower for a fourth straight session yesterday, dragged down by weaker energy shares on the back of falling crude and as the concerns about the prospect for further corporate sector losses mounted.

The FTSEurofirst 300 index of top European shares closed 1.6 per cent lower at 853.22 points after falling 0.5 per cent on Friday. The index plunged 45 per cent in 2008.

Across Europe, Britain's FTSE 100 index, Germany's DAX and France's CAC 40 fell 0.5-1.6 per cent.

The energy sector took the most points off the index as crude fell about seven per cent, pushed lower by growing evidence recession is reducing global energy consumption. BP, Royal Dutch Shell, BG Group, Tullow Oil, Norsk Hydro and Total shed 0.8-10 per cent.

Shares in automakers, hard hit by falling demand for cars across the world, also slipped. BMW, Daimler AG, Porsche, Volkswagen AG, Renault and Fiat were down up to 8.4 per cent.

"The levels of indexes seem to reflect that they already have taken on board a lot of profit forecasts being reduced. Nevertheless, risk aversion is the main story of the day," said Valerie Plagnol, chief strategist at CM-CIC Securities.

"We are not yet sure of the depths and lengths of the recession and as long as we cannot access that properly, it's hard to really look at a rebound. Sector by sector, we need to be very selective and very careful," she said.

The Organisation for Economic Cooperation and Development's leading indicator for the Group of Seven (G7) nations fell to 93.3, pointing to "deep slowdowns in the major seven economies and in major non-OECD member economies, particularly China, India and Russia".The gloomy economic outlook continued to hurt companies.

Global miner Rio Tinto postponed the $2.15 billion expansion of its Brazilian iron ore mine as the global downturn hit steel output, and a newspaper said the debt-laden group was selling an Australian coal unit. Its shares fell 1.4 per cent. Other miners were also weaker. BHP Billiton, Anglo American , Vedanta Resources, Xstrata and Antofagasta fell up to 8.1 per cent.