May 5, 2010 / 3:47 PM / 8 years ago

European shares close lower on contagion fears

LONDON, May 5 (Reuters) - European stocks closed lower on Wednesday, as sentiment was soured by the threat of a growing debt crisis in the euro zone, offsetting positive results from InBev (ABI.BR) and a rise in U.S. private sector jobs.

Some nerves were rattled after ratings agency Moody’s said it was more likely to downgrade Portugal’s Aa2 credit rating after placing it on a three-month review than when it first put the country on negative outlook last year. [ID:nLDE64421G]

    The pan-European FTSEurofirst 300 .FTEU3 index of top shares provisionally closed 0.8 percent lower at 1,024.70 points to a two-month closing low for the second day in a row.

    “There is a fear that maybe it’s a correction or the end of the cyclical counter trend bull market. We see an increase in volumes on falling prices and that is not a good sign technically,” said Giuseppe-Guido Amato, strategist at Lang & Schwarz in Frankfurt.

    World No.1 brewer Anheuser-Busch InBev rose 2.3 percent after it earned more than expected in the first quarter of 2010 as beer sales surged in Brazil and forecast stronger growth in the second half of the year. [ID:nLDE6421LX] (Reporting by Harpreet Bhal)

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