Europe shares fall on disappointing economic data

LONDON, Sept 28 Tue Sep 28, 2010 11:37am EDT

LONDON, Sept 28 (Reuters) - European stocks fell for a second straight day on Tuesday, led lower by banking and auto shares, as investors shed riskier assets after a report showed U.S. consumer confidence fell to its lowest since February.

Sentiment also worsened after figures showed single-family U.S. home prices dipped in July as high unemployment and millions of foreclosed homes and distressed borrowers kept stalling a home price recovery. [ID:nN28171424]

The FTSEurofirst 300 .FTEU3 index of top European shares provisionally closed 0.3 percent lower at 1,070.42 points after trading in a wide range of 1,061.51-1,077.22.

"We need some sustained evidence that we are transitioning towards a sustainable growth rate," said Ian Richards, European equity strategist at RBS.

Financial stocks were among the top losers, with the STOXX Europe 600 banking index .SX7P falling 1 percent. Standard Chartered (STAN.L), Royal Bank of Scotland (RBS.L), Allied Irish Banks (ALBK.I) and Bank of Ireland (BKIR.I) fell between 0.7 percent and 5.7 percent. (Reporting by Atul Prakash)

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