LONDON Nov 28 European shares edged lower on
Wednesday as fresh worries over the U.S. economy's "fiscal
cliff", a combination of looming spending cuts and tax hikes,
impacted the region's stock markets.
The pan-European FTSEurofirst 300 index, which rose
4 percent last week, slipped 0.2 percent to 1,104.78 points in
early trade. The euro zone's blue-chip Euro STOXX 50 index
fell 0.3 percent to 2,535.69 points.
Banking group Raiffeisen was the worst-performing
stock on the FTSEurofirst 300, falling 5 percent after the
company said it expected bad loans to rise.
U.S. Senate Majority Leader Harry Reid said on Tuesday he
was disappointed there had been "little progress" among Democrat
and Republican lawmakers as they try to reach a deal to avoid
the year-end "fiscal cliff".
The "fiscal cliff" refers to $600 million in spending cuts
and tax hikes, which could derail the U.S. economic recovery.
"It's just that one comment that is causing a slight storm
in the tea cup. I think it's still a pretty resilient market out
there, I don't see Europe following the U.S. by falling too far
down," said McLaren Securities managing director Terry Torrison.