European stocks led lower by Portugal as politics hits shares
* FTSEurofirst 300 down 0.4 pct, PSI 20 down 3.1 pct
* Portuguese banks fall as yields hit 4-month high
* Continental falls after missing earnings forecast
* Renault under pressure as PM doesn't want Nissan deal (Adds detail, quote)
By Danilo Masoni and Alistair Smout
MILAN/LONDON, Nov 9 (Reuters) - European shares fell on Monday, led lower by shares in Portugal, where an agreement between leftist parties to work together to form a government unnerved investors.
Portugal's PSI 20 index fell 3.1 percent, underperforming a 0.4 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...