European shares close lower; U.S. data weighs

LONDON, Nov 24 - European shares closed lower on Tuesday after data showed the U.S. economy grew at a slower rate than forecast in the third quarter and home prices in the United States rose less than expected in September.

The pan-European FTSEurofirst 300 <.FTEU3> index of top shares provisionally closed 0.6 percent lower at 1,017.87 points after rising to a high of 1,025.17 earlier in the session.

The index has gained nearly 58 percent since falling to a record low in early March and is up 22 percent for the year.

Banks featured among the worst performers. HSBC <HSBA.L>, BNP Paribas <BNPP.PA>, Societe Generale <SOGN.PA>, UBS <UBSN.VX> and Credit Suisse <CSGN.VX> were down 1.9 to 3.2 percent.

"There has been some mixed economic data and the market has taken a more pessimistic view on it. Wall Street is going down with Europe in pursuit," said Philippe Gijsels, strategist at Fortis Bank.

"The market has been a little bit volatile but that is also probably because volumes are quite low. The U.S. is about to go into its Thanksgiving holiday weekend, so there are big swings in the market and that is what you are typically seeing today."

The U.S. economy grew at a slower pace than forecast in the third quarter, while Standard & Poor's/Case-Shiller indexes showed home prices rose less than expected in September. [ID:nN23258482] [ID:nN24298560]

But, U.S. consumer confidence edged higher in November after an unexpected drop in October, with less consumers expressing doubt about the a worsening jobs market, according to a report. [ID:nN24300840] ((joanne.frearson@thomsonreuters.com; +44 207 542 2773, Reuters Messaging:joanne.frearson.thomsonreuters.com@reuters.net))