European markets decline led by banks (Reuters) (26-05-2008)

LONDON, May 26 (Reuters) - European shares retreated on Monday despite oil prices resuming their climb as energy stock gains were offset by a decline in banks, with UBS under renewed pressure. UK and U.S. markets are closed for public holidays.

Crude oil prices continue to trade above $130 a barrel weighing on global equities firing inflation concerns and depressing the dollar.

The Amsterdam-listed shares of Royal Dutch Shell were up 0.3 percent, while shares in France's Total were flat and Italy's ENI rose 0.3 percent.

The FTSEurofirst 300 index of top European shares was down 0.2 percent at 1,319.81 points at 0810 GMT, following a 1.7 percent fall on Friday that brought last week's decline to 3.2 percent.

Banks were the worst performing sector. The DJ Stoxx index of European banks lost 0.5 percent, led by a decline in shares of UBS, which shed nearly 3 percent ahead of the stock trading ex-rights on Tuesday, Swiss-based dealers said.

UBS is Europe's largest subprime casualty so far, having written down $37 billion of assets hit by the U.S. subprime lending crisis.

Banco Santander lost 0.7 percent, while UniCredit fell 1.3 percent and Credit Suisse lost 0.8 percent.

Many of the banking index's heavyweights such as HSBC, Royal Bank of Scotland and Barclays were not trading because of the public holiday in Britain.

  Source Reuters