Europe shares end down on banks, autos, oils

LONDON, Dec 22 (Reuters) - European shares closed lower on Monday, weighed down by banks, autos and oils and mirroring losses on Wall Street as volumes dried up at the start of Christmas week.

The FTSEurofirst .FTEU3 index of top European shares unofficially ended down 1.5 percent at 810.98 points, notching up a seventh day of losses out of eight. The benchmark has fallen 44 percent this year, injured by a credit crisis that has knocked several major economies into recession.

"Few could have predicted how traumatic 2008 would turn out to be, how much volatility there would be in the markets and how destructive the credit crisis would turn out to be," said Henk Potts, strategist at Barclays Stockbrokers in London.

Banks led losses, with Santander (SAN.MC) off 3.2 percent and UBS (UBSN.VX) down 4.3 percent. Shares in French bank BNP Paribas (BNPP.PA) dropped 3.5 percent as traders cited renewed fears of a capital increase if BNP does not buy Fortis. BNP CEO Baudouin Prot told Les Echos the bank does not need a capital increase if its offer for Fortis fails.

"It's a pretty lacklustre trading session. Investors are very much focusing on what 2009 has to offer. The first half of the year is going to be difficult and volatile. (But) there's certainly more hope as you look into the second half of the year," Potts added.

Auto shares were sharply lower after Toyota (7203.T), the world's biggest automaker, forecast its first-ever group operating loss due to a relentless global slide in car sales and a crippling rise in the yen. For more click on [ID:nLM340385]

Volkswagen (VOWG.DE) lost 7.3 percent, Porsche (PSHG_p.DE) fell 1.4 percent and BMW (BMWG.DE) shed 3.9 percent.

Oil shares also fell as crude oil prices dropped more than 2 percent, with Total (TOTF.PA) down 2.5 percent and Royal Dutch Shell (RDSa.AS) 1.3 percent lower.

Across Europe, Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC .FCHI were down 0.9-2.3 percent.

Major U.S. stock indexes were about 1-2 percent lower as European trade drew to a close. (Reporting by Rebekah Curtis)