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European shares close lower as banks fall

Published 09/22/2010, 11:40 AM
Updated 09/22/2010, 11:44 AM

LONDON, Sept 22 (Reuters) - European shares fell to their lowest close in two weeks on Wednesday, after the U.S. Federal Reserve made a downbeat assessment of the health of the economy.

The FTSEurofirst 300 index of top European shares fell 1.4 percent to a provisional close of 1,067.53 points. The index fell 0.5 percent on Tuesday, though it is still up more than 4 percent in September.

The heavyweight banking sector was the biggest drag on the index. UniCredit, Italy's biggest bank, fell 4 percent after chief Executive Alessandro Profumo quit in a row over Libyan stake-building.

Banco Santander fell 2.7 percent after it was downgraded by Credit Suisse.

"The market had been anticipating positive news on quantitative easing from the Fed but there was no definitive statement," said Mark Bon, fund manager at Canada Life in London. "There has been some profit-taking as the market had gone back near the top of its trading range." (Reporting by Brian Gorman)

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