European shares hit 3-week low on Greece, Nokia

LONDON, April 22 (Reuters) - European shares hit a 3-week closing low on Thursday, with banks slipping as Greek's debt concerns persisted and Nokia (NOK1V.HE) dropping after it cut its profit outlook.

Investment sentiment was dented after Eurostat said the Greek government posted a budget deficit worse than feared, while a Moody's Investors Service downgrade of Greece's sovereign rating added to investor worries.

The pan-European FTSEurofirst 300 .FTEU3 index of top shares provisionally closed down 1 percent at 1,085.11 points, having earlier been up as much as 1,102.69 points.

Banks extended their slide from the previous session. Greek banks .FTATBNK slipped 5.4 percent, while Banco Santander (SAN.MC), BBVA (BBVA.MC), HSBC (HSBA.L), BNP Paribas (BNPP.PA) and Societe Generale (SOGN.PA) fell 0.7 to 3 percent.

"Today it is a Greek story. The market seems to be pricing in some default or restructuring," said Mike Lenhoff, chief strategist at Brewin Dolphin.

"The Moody's downgrade is another part of the saga. Each time we have some sort of announcement and get closer to a resolution, there seems to be another stage to overcome."

Credit Suisse (CSGN.VX) fell 4.7 percent after first-quarter results failed to match the blowout numbers from major U.S. banks disappointing investors.

Nokia sunk more than 14 percent after it cut its profit outlook and delayed the launch of phones it needs to compete with the iPhone and Blackberry. [ID:nLDE63J2CV]

For a Reuters poll on the risk of Greek default, click [ID:nLDE63J232]. (Reporting by Joanne Frearson)