LONDON, Nov 19 (Reuters) - European shares fell for a third straight session on Thursday to a one-week closing low as a bearish analyst comment on semi-conductor stocks hurt technology shares and falling commodity prices pressured oils and miners.
Financial stocks also suffered heavily following a broad sell-off in the market, with Credit Agricole (CAGR.PA), Credit Suisse CSGN.VX, Deutsche Bank (DBKGn.DE), UBS UBSN.VX and Commerzbank (CBKG.DE) falling 2.3 to 2.7 percent.
Investors’ appetite for risky assets such as equities fell, with the VDAX-NEW volatility index .V1XI rising 3.3 percent. The higher the index, which is based on sell and buy options on Frankfurt’s top-30 stocks <0#.GDAXI>, the lower the market’s desire to take risk.
The FTSEurofirst 300 .FTEU3 index of top European shares provisionally ended down 1.6 percent at 1,011.05 points, the lowest close since Nov. 10. It registered its biggest one-day percentage fall in three weeks.
“We are missing positive triggers to move higher. When you feel the market can’t go higher, then you try it on the down side and take profits,” said Giuseppe-Guido Amato, strategist at Lang & Schwarz in Frankfurt.
“It’s possible that we see a continuation of this (correction) even on Friday, but it’s quite normal. There are enough buyers on the sidelines waiting for a trigger.”
Technology stocks lost ground after BofA Merrill Lynch cut its 2010 growth outlook for the global semiconductor industry, citing the potential for a correction in inventory levels.