* Trading in UK shares halted by LSE technical problems
* Banks, LSE, autos hit by Dubai concerns
* Commodity stocks down on falling crude, metal prices
By Brian Gorman
LONDON, Nov 26 (Reuters) - European shares fell sharply on Thursday, hurt by debt problems in Dubai that sent bank stocks lower while commodity shares slipped on weaker crude and metals prices.
At 1213 GMT, France's CAC .FCHI and Germany's DAX .GDAXI were down 1.7 and 1.8 percent respectively. Britain's FTSE 100 .FTSE was indicated 1.9 percent down before trading halted at the London Stock Exchange due to technical difficulties.
The LSE said all London shares prices were indicative. [ID:nGEE5AP12Q]
The FTSEurofirst 300 index of top European shares was indicated at 1,002.98 points, down 2 percent, after hitting a three-week low.
Financial shares were the biggest drag as concerns on the health of the global financial system resurfaced as Dubai said two of its flagship firms planned to delay repayment on billions of dollars of debt. [ID:nGEE5AO2L1]
BNP Paribas (BNPP.PA: 行情), Banco Santander (SAN.MC: 行情), Barclays (BARC.L: 行情), Credit Suisse (CSGN.VX: 行情), Deutsche Bank (DBKGn.DE: 行情), HSBC (HSBA.L: 行情), and UniCredit (CRDI.MI: 行情) were down between 2.7 and 4.6 percent.
The European benchmark index is still up more than 54 percent from its lifetime low of March 9, as investors have become more confident on the prospects for economic recovery.
"It (the Dubai credit issue) does bring to the fore that much of what we have seen in the markets really has been supported by liquidity," said Georgina Taylor, equity strategist, Legal & General Investment Management.
"It shows how vulnerable the market still is to newsflow," she said. "But it should be seen as a country-specific issue. It's not something systemic. It's about risk appetite. It's a reason for some of those involved in the market to scale back a bit, while we try to understand what's going on."
Shares in the London exchange (LSE.L: 行情) were indicated 4.2 percent down as traders cited concern that Bourse Dubai held a substantial stake in the company. This added to a 3.8 percent decline on Wednesday, when the operator reported a fall in first-half profit.
Porsche (PSHG_p.DE: 行情) fell 6.9 percent, as traders pointed to worries that Qatar Investment Authority may cut its 10 percent stake in the carmaker to boost liquidity after the Dubai government's debt standstill request.
MINERS FALL
Mining stocks fell, tracking lower metals prices. Gold prices XAU= fell back from a record high of $1,194.90, as the dollar rebounded from lows. 待续
