Tesco leads European shares lower after weak update


LONDON, Oct 2 (Reuters) - European stocks edged lower onWednesday, led by British supermarket Tesco after aweak trading update and by gold miners after downgrades byCitigroup.

A focus of the day was the fate of Italy's government. IfPrime Minister Enrico Letta's administration survives, investorsmay pour fresh money into shares, which recorded their biggestgain in three weeks on Tuesday.

Other factors on trades mind included the U.S. governmentshutdown and a European Central Bank policy meeting.

Shares in Tesco fell 2.2 percent after Britain's biggestgrocer posted flat quarterly sales in its home market despite 1billion pounds ($1.62 billion) of investment.

It was the top faller of the pan-European FTSEurofirst 300 index, which was down 0.4 percent at 1,251.27 points.

Precious metals miners Fresnillo and Randgold were also heavy fallers, down 1.8 percent each, afterCitigroup downgraded both stocks to "sell" on expectations offalling gold prices.

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