European shares ended lower on Monday as weaker crude and metals prices hit commodity stocks and Commerzbank's $14.5 billion deal to buy Allianz's Dresdner Bank unit dragged down banking shares, Reuters reported. The FTSEurofirst 300 index of top European shares closed down 0.45 percent at 1,189.35 points, slipping on the first day of the month after gaining 1.2 percent in August, only its second positive month in the previous 10. The pan-European index is down 21 percent this year, hit by big losses at banks due to the credit crisis and slowing global economic growth. Miners were the top weighted sectoral loser on the index, tracking a sharp decline in metal prices. Copper fell 2.6 percent under pressure from gains in the dollar, rising stocks and worries about demand. Other base metals also slipped. BHP Billiton, Anglo American, Vedanta Resources, Lonmin, Kazakhmys, Xstrata, Antofagasta and Rio Tinto fell between 1.4 and 5.8 percent. Energy shares also dropped because of a 3.4 percent fall in crude oil prices after concerns that Hurricane Gustav would cause severe damage to the U.S. oil sector eased as the storm failed to pick up strength. BP, Royal Dutch Shell, gas producer BG Group, Cairn Energy and Tullow Oil shed between 1.5 and 4.4 percent. The weaker crude price put pressure on energy stocks, but was seen positive for companies and broader markets as it lowered inflation concerns. European shares pared losses in the afternoon session with a decline in crude prices. "Whilst some traders feel that Europe has outperformed other global equity markets and a sell-off is therefore possible, the $6 reversal in the price of oil has encouraged some follow through buying," said Paul Chesterton, senior trader at CMC Markets. Across Europe, Britain's FTSE was down 0.6 percent, Germany's DAX fell 0.01 percent and France's CAC was down 0.2 percent. U.S. markets are closed for the Labor Day holiday.
