Profit taking pulls down shares

Having spent most of Tuesday in positive territory, European shares ended the session down as the euphoria faded over the US government’s bailout of home financiers Fannie Mae and Freddie Mac and investors sold stocks to take profits off the back of Monday’s rally.

Sharply lower oil prices – down 2% – were a double edged sword; they pushed up the shares of companies that are sensitive to fuel costs, particularly airlines and travel firms, but dragged down energy producers and mining companies slumped as the prices of gold, copper, nickel, tin and zinc declined.

However banks, particularly in the UK, extending their gains.

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