European shares dip; Nokia falls, Suez up

LONDON, May 26 (Reuters) - European shares dipped early on Monday, led by a decline in Nokia NOK1V.HE after market talk in Asia of the Finnish mobile phone maker cutting handset prices and re-entering South Korea later this year.

Nokia shares were down 1.2 percent, making them the largest individual drag on the broader European market. Shares in South Korea's LG Electronics 066570.KS and Samsung Electronics 005930.KS fell in Seoul as talk circulated of a cut of up to 20 percent in the price of Nokia handsets.

The FTSEurofirst 300 index .FTEU3 of top European shares was down 0.1 percent at 1,321.02 points at 0705 GMT, following a 1.7 percent fall on Friday that brought last week's decline to 3.2 percent.

Crude oil CLc1 holding above $130 a barrel continued to put pressure on global equities as investor concern over the spread of inflation persisted.

“Oil is key for future developments in the short term,” said FrankfurtFinanz strategist Heino Ruland, adding OPEC Secretary-General Abdullah al-Badri’s reiteration on Friday that runaway oil prices are caused by market speculation and not by supply issues would likely push crude futures higher and further hinder equities.

Shares in French utility Suez LYOE.PA were among the top gainers, rising 0.7 percent after the company said it was looking to sell its Belgian natural gas trading arm Distrigas DISTy.BR. The company said on Saturday it had entered into exclusive talks with Italy's Eni ENI.MI.


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