RPT-European shares hit after indexes breach support

Fri Nov 9, 2012 8:06am EST

LONDON Nov 9 (Reuters) - European stocks extended losses after several major indexes broke below chart support levels and triggered fresh sell orders, traders said.

A decline in U.S. futures ahead of the Wall Street open added weight to the move, with markets on both sides of the Atlantic still concerned with the U.S. fiscal outlook.

Germany's DAX, down 1.3 percent to 7,113 points, extended losses after breaking below support in the 7,147 area, corresponding to a low hit in late October. Britain's FTSE 100 , meanwhile, fell 0.7 percent to a new two-month low of 5,738 points after failing to hold above 5,750.

"The turning point for the day when we went below 5,750," David Madden, a market analyst at IG, said about the FTSE.

"We've gone down since (U.S. president Barack) Obama came into power. We're now looking at new lows. If U.S. investors remain worried about the fiscal cliff we could below 5,700 below the U.S. open or shortly after."

The FSTEurofirst 300 index was 0.7 percent lower at 1,090.17 points at 1255 GMT, while futures for the S&P 500 were 0.5 percent lower.