European shares finished the session lower on Thursday though London’s FTSE rose. Frankfurt was the region’s worst performer as Germany’s Ifo institute said its economy will shrink two point two percent next year.
Companies which rely on sales in the US were hit hard as weekly jobless claims there jumped to a 26 year high. European financial stocks suffered from renewed fears of global economic weakness, and carmakers declined on uncertainties over the proposed US bailout package. The euro is at its highest in six weeks against the dollar. Crude prices ramped up helped by favourable demand forecast by the International Energy Agency and as Saudi Arabia said it pumped less oil than expected last month.