Portuguese politics hits shares, leads Europe lower
* 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...