European stocks led lower by Portugal's political uncertainty
* FTSEurofirst 300 down 1.1 pct, PSI 20 down 4.1 pct
* Portuguese banks fall as bond yields hit 4-month high
* Continental falls after missing earnings forecast
* Renault under pressure as PM doesn't want Nissan deal (Updates with closing prices)
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 4.1 percent, underperforming a 1.1 percent drop for the FTSEurofirst 300 , which closed at 1,482.21 points.
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-designate acknowledged he could be forced into opposition.
The would-be partners reject some of the reforms imposed to help Portugal escape a debt crisis. Continuación...