Portuguese politics hits shares, leads Europe lower

lunes 9 de noviembre de 2015 08:39 GYT
 

* FTSEurofirst 300 down 0.3 pct, PSI 20 down 1.9 pct

* Portuguese banks fall as yields hit 4-mth high

* Continental falls after missing earnings forecast

* Renault under pressure as PM doesn't want Nissan deal

By Danilo Masoni and Alistair Smout

MILAN/LONDON, Nov 9 (Reuters) - European shares fell on Monday, led lower by a sharp drop in Portuguese shares, with investors unnerved by an agreement between leftist parties to work together to form a government.

Portugal's blue chip PSI 20 fell 1.9 percent, sharply underperforming a 0.3 percent dip for the FTSEurofirst 300.

Two small far left parties have concluded talks with the moderate Socialists to create an alternative government and oust the centre-right, whose prime minister acknowledged he could be forced into opposition.

More than 100 entrepreneurs have signed a manifesto arguing that uncertainty was compromising investment, balance sheets and jobs. The would-be partners also reject some reforms imposed to escape a debt crisis.   Continuación...