European shares extend losses, banks fall
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European shares extend losses, banks fall UPDATED 04 Jun 2008 | 9:14  
European shares extend losses, banks fall

FRANKFURT (Reuters) - European shares extended early losses to trade 1.7 percent lower on Wednesday as French bank Societe Generale fell more than 4 percent amid renewed worries about the financial sector.

By 0825 GMT the FTSEurofirst 300 index of leading European shares was down 1.7 percent at 1,307.20 points, at six-week lows. The index rose 0.75 percent on Tuesday, partly due to lower oil prices.

"It's the increasing uncertainty concerning financial shares, this theme has returned," said Giuseppe-Guido Amato, equity strategist at Lang & Schwarz in Duesseldorf.

"We may have seen the peaks already," he said, predicting further market jitters in the run-up to the release of big U.S. banks' interim reports for the quarter to end May, notably Lehman Brothers.

Away from financials, French construction to telecoms group Bouygues fell 5.3 percent after first-quarter earnings failed to impress investors.

Economic data showed euro zone services sector growth slowed close to contraction in May as France saw a steep slide in growth, while price pressures picked up across the region.

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