Oil majors drag European shares lower; GS awaited

Published 10/19/2010, 03:13 AM
Updated 10/19/2010, 03:16 AM
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LONDON, Oct 19 (Reuters) - European shares fell on Tuesday, with oil majors pressured by falls in crude prices as the dollar rebounded, and with investors awaiting results from U.S. banks, including Goldman Sachs for further direction.

By 0707 GMT, the pan-European FTSEurofirst 300 index of top shares was down 0.2 percent at 1,086.18 points, retreating from a near-six month closing high on Monday.

Oil majors fell, with the STOXX Europe 600 oil and gas index down 1.8 percent, tracking falls in crude prices as the dollar rebounded after Washington pledged its desire for a strong dollar in the face of growing speculation of quantitative easing in the United States.

"Having priced in QE, markets are wondering about whether they have over anticipated the extent of it. If the only thing that is tempering the markets expectations of the amount of QE is better-than-expected economic data then that's still good news," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin.

Technology firms were also lower, after U.S. peer Apple posted disappointing sales of its iPad tablet computer. ARM Holdings, Capgemini and Aixtron fell 1.6 to 2.4 percent. (Reporting by Harpreet Bhal)

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