European stocks retreat; S&P, banks, commods weigh
* FTSEurofirst 300 index down 2.1 pct
* Banks, commods weigh
* S&P cut of UK outlook spooks investors
By Joanne Frearson
LONDON, May 21 (Reuters) - European shares dropped on Thursday, weighed by banks, commodities and a ratings agency cut in the UK's economic outlook, while signs of further U.S. job weakness and a disappointing Fed survey added to the gloom.
The pan-European FTSEurofirst 300 index of top shares closed down 2.1 percent at 857.52 points, breaking a five-day winning run.
The index, which on Wednesday ended at its highest close since early January, is up about 33 percent since falling to a lifetime low in early March.
"You've got to look at this fall in the context of the rally we have seen in recent weeks. This is a sharp fall but really it is a pause in what has been a remarkably strong rally ... this is just a general pull-back by investors," said Peter Dixon, strategist at Commerzbank. Continued...
India Investment Summit 2009
Top executives and bankers discuss their own plans and the broader opportunities and challenges for India. Full Coverage
GLOBAL RECOVERY
Global economy in holding pattern - IMF
The global economy is in a holding pattern and vulnerable to more upheaval, the head of the IMF said, adding a lasting recovery will depend on policymakers taking the proper steps in the coming months. Full Article
India
US
UK
