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Europe shares fall in early trade; miners lower

Published 11/26/2010, 03:14 AM
Updated 11/26/2010, 03:20 AM

LONDON, Nov 26 (Reuters) - European shares fell early on Friday as the euro zone debt crisis intensified, with Portugal under pressure to accept a bailout, and miners hit by weaker commodity prices on Chinese inflation worries.

At 0810 GMT, the FTSEurofirst 300 index of top European shares was down 0.6 percent at 1,085.83 points, after rising 0.5 percent in the previous session.

"It's amazing how resilient markets have been considering the financial explosions we've had in Europe and the gunfire in Korea," said Justin Urquhart Stewart, director at Seven Investment Management.

"The market is still trying to find where it goes next. A lot of people may well be saying 'I'll take my profits and square the books'."

Miners fell on weaker metals prices, with worries that China will move to rein in lending in its fight against inflation.

BHP Billiton and Rio Tinto fell 2.4 and 2.6 percent, respectively.

A majority of the 16 euro zone nations and the European Central Bank are urging Portugal to apply for a financial bailout from a European rescue fund, Financial Times Deutschland said on Friday.

(Reporting by Brian Gorman)

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