LONDON, Dec 8 (Reuters) - European shares extended losses on Tuesday, with traders citing a media report about the size of losses facing Nakheel, a unit of Dubai World, as one of the key reasons for sharp losses in banks.
Weak German industrial output for October also weighed on the pan-European FTSEurofirst 300 .FTEU3 index, which was down 1 percent at 1,010.18 points.
“Basically it was two things. First of all it was the German figures but more importantly, Nakheel had a first half loss of $3.65 billion a document showed according to Bloomberg News,” a trader said.
Nakheel declined to comment.
Another trader said: “It’s the weak German industrial output numbers and a report about big losses at Nakheel. Anything Dubai-related has a big impact on the banks and with trading thin everthing gets exaggerated.” (Reporting by Dominic Lau, Jon Hopkins and Atul Prakash)
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