Euro Stocks End Week 2.8% Lower

European stocks slipped in a broad selloff, falling for the seventh day in nine sessions, with fresh fears over the financial sector knocking down banking shares such as Societe Generale.

Pharmaceutical stocks, which have been resilient over the past few weeks, take a beating with Novartis down 6.4 percent and Sanofi-Aventis falling 11 percent.

The FTSEurofirst 300 index of top European shares unofficially closes 2.8 percent lower at 759.06 points after hitting a low of 750.48.

The index loses 11.7 percent on the week, its third consecutive week of losses, amid rising concerns over the prospect of a deep global downturn.

Renewed fears over the future of stricken Citigroup knock European financial shares lower, with SocGen plummeting 13.4 percent.

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"Although the market has shown some signs of improvement recently, fundamentally people are still very risk-averse," said Andrew Turnbull, senior sales manager at ODL Securities.

"And who can blame them when we are still in a position of being worried about the creditworthiness of some of our largest and most trusted financial institutions ... Many will be following the price of oil," Turnbull said.

Banks were among the top gainers on the index, with UBS rising 0.4 percent, Royal Bank of Scotland gaining 3 percent.

Bank of Ireland jumped 20 percent after the Irish Independent newspaper said a consortium was planning a 2.5 billion to 3 billion-euro ($3.13-3.76 billion) bid for the bank amid government plans for consolidation in the sector.

The bank confirmed it had received unsolicited approaches.

Barclays rose 4.3 percent after one of the British bank's top investors, Legal & General Investment Management, part of insurer Legal & General, said it would back Barclays' fundraising plan even though it did not like the structure of the controversial deal.

Fortis shares were down 1.7 percent.

The Dutch Prime Minister confirmed the banking merger between the Dutch retail operations of Fortis and ABN Amro would take place as planned.

Miners were higher, tracking firmer metals prices.

BHP Billiton, Anglo American, Vedanta Resources, Lonmin, Kazakhmys, Xstrata, Antofagasta and Rio Tinto rose 2.6-16 percent.

Rate Cut Talk

Possibilities of interest rate cuts improved sentiment. There was talk that China might lower borrowing costs later on Friday.

The United States, Britain and Europe are expected to ease their rates further next month as the worst financial crisis in 80 years hastens recession across much of the globe. But gloomy economic figures continue to pour in.

A PMI survey showed output of euro zone services and manufacturing business sank much further and faster than expected in November to record lows.

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