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* Pan-European STOXX index down 0.8 pct
* Italian banks fall on Monte Paschi cash call worries
* Oil sector falls with crude prices choppy
* Utilities outperform, led by Endesa
By Danilo Masoni and Alistair Smout
MILAN/LONDON, Nov 28 European shares fell on
Monday, weighed down by a drop in banks which were led lower by
Italian lenders which hit their lowest point since end-September
on continued worries over a cash call at troubled lender Monte
The pan-European STOXX Europe 600 index was down
0.8 percent at 339.83 by the close. The regional bank index
closed down 1.8 percent, the biggest sectoral faller.
Italian banks fell 3.9 percent, hitting an
8-week low, on continued doubts over Monte dei Paschi's ability
to execute a 5 billion euros capital cash call.
Investors fear that a failure of the capital raising could
heighten worries over the whole Italian banking system, adding
to pessimism over political stability ahead of Sunday's
referendum on constitutional reform.
"Uncertainty (on Monte Paschi) remains very high," said JCI
Capital portfolio manager Alessandro Balsotti, who said that
sentiment could brighten if the bank finds an anchor investor.
The main Italian stock index dropped 1.8 percent,
the stand-out underperformer among major European indexes.
Monte dei Paschi was suspended for excessive
volatility after a drop of more than 12 percent, and ended down
13.8 percent, while the country's strongest bank Intesa Sanpaolo
lost 3.2 percent.
Banks, which had benefited from a rally in U.S. treasury
yields following Donald Trump's victory in the race for the
White House, were broadly lower as U.S. treasury yields pulled
back from a 16 month highs.
The oil & gas index also dropped as major oil
producers convened in Vienna for an OPEC meeting later in the
Shares in oil majors Total, Royal Dutch Shell
and Eni fell in early trade, reacting to steep
losses in oil prices late on Friday and on Monday morning.
However, the sector ended off of lows, down 0.6 percent,
after Brent crude turned sharply higher when Iraq's oil minister
said the country was looking to co-operate on a deal to cut
Financial services firms also suffered in the risk-off mood.
Aberdeen Asset Management ended lower despite
It had risen over 5 percent in early deals, but ended 4
percent lower as traders cited a cautious outlook for the
British asset manager which continues to suffer outflows.
Man Group also fell, down 4.6 percent, after the
stock was downgraded by Exane BNP Paribas to neutral, though
London-listed lender CYBG rose 3 percent, helped by an
upgrade to "buy" from Goldman Sachs.
Utilities, which had suffered from risings global bond
yields becasuse that makes their dividends relatively less
attractive, outperformed. The sector index was up 0.4
percent, with Endesa underpinned by a price target
upgrade at Credit Suisse.