LONDON Nov 21 European shares fell to
their lowest close in nearly seven weeks on Monday, as U.S.
political deadlock on its deficit added to investors' worries
about the euro zone's debt crisis, made worse by Moody's warning
The FTSEurofirst 300 index of top European shares
fell 3.1 percent to end the session provisionally at 921.37
points, the lowest close since Oct. 5.
Cyclical stocks such as miners were among the biggest
casualties on worries the euro zone crisis would lead to
recession, and hurt demand for metals. The STOXX Europe 600
Basic Resoureces Index fell 6 percent.
"There's a chronic lack of political leadership either side
of the Atlantic. They're showing they're not up to the task,"
said Bill Dinning, head of investment strategy at Kames Capital
in Edinburgh, which has 48.8 billion pounds ($76.4 billion)
Rating agency Moody's Investors Service expressed worries
that a recent rise in interest rates on French government debt
and weaker economic growth prospects could be negative for the
country's credit rating.
A congressional "super committee" was expected to concede
defeat in its bid to lower the U.S. deficit.