European shares extended their losses to a fourth day yesterday, with drugmakers falling, and US home sales data casting doubt on the economic recovery.
The pan-European FTSEurofirst 300 index of top shares fell 0.6 per cent to 1,018.65 points, its lowest close since December 18. The fall took the index's loss to 4.7 per cent over four sessions.
Across Europe, the FTSE 100, Germany's DAX and France's CAC 40 ended the day between 0.8 and 1.1 per cent lower.
Wall Street was higher around the time European bourses were closing. The Dow Jones, S&P 500 and Nasdaq Composite were up between 0.3 and 0.6 per cent.
Pharmaceuticals fell, their defensive qualities having protected them from the worst of last week's slide.
Novartis fell one per cent, ahead of results today. GlaxoSmithKline, Shire, Roche and Sanofi-Aventis fell between 0.9 and 2.1 per cent.
"We haven't had full confirmation (of the recovery) from economic data or earnings," said Georgina Taylor, equity strategist at Legal & General Investment Management.
"It's no one thing in isolation. Obama, Greece and China have all contributed (to the market's decline). It's going to be like this for a while," she said.
Economic data did little to boost sentiment. Sales of previously owned US homes fell at the fastest pace on record in December, though prices rose for the first time since the credit crisis began in August 2007, an industry trade group said yesterday.
Back in Europe, banks rose early in the session, recovering some ground lost last week when US President Barack Obama outlined plans for tougher regulations. But they finished the session mixed.
Greek banks rose, on optimism that high demand for a syndicated five-year bond by the Greek government, under pressure to reduce its deficit, will help reduce lenders' funding costs, analysts said. National Bank, EFG Eurobank, Piraeus Bank and Alpha Bank rose between 2.9 and 6.6 per cent.
Greek investment company Marfin Investment Group rose 11.5 per cent. Fallers in the banking sector included Banco Santander and BNP Paribas, down 1.4 and 1.8 per cent respectively.
Energy shares suffered, with oil prices having fallen nearly $10 a barrel in the last two weeks, to less than $75. BP, Statoil and Total fell between 1.1 and 1.3 per cent.
Among individual shares, Philips Electronics gained 5.1 per cent after the Dutch conglomerate reported a bigger-than-expected operating profit.
The world's biggest mobile networks maker Ericsson slipped 1.1 per cent after it posted lower-than-expected sales for the fourth quarter.