European shares slip back after strong run

European shares slip back after strong run

London: European shares fell in early trade on Wednesday, after a strong run, with miners lower on weaker metals prices, and investors remaining worried about sovereign debt levels in the euro zone.

At 1:36pm, the FTSEurofirst 300 index of top European shares was down 0.2% at 1112.94 points, after rising 0.9% in the previous session, when it hit its highest intraday level since September 2008.

Investor sentiment has been boosted by US tax cuts and the prospect of further monetary stimulus, though investors remain worried about the high sovereign debt levels in the euro zone peripheral countries.

“The euro zone debt crisis hasn’t gone away. Spain remains the thing to watch," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin.

“But it will not be enough to stop a rally in global equity markets. The data, especially PMIs, has been reasonably good, with good figures out of Germany, though the US labour market data has been disappointing."

Miners fell as a stronger dollar helped to weaken metals prices. Antofagasta, BHP Billiton, Rio Tinto and Xstrata fell between 1.4 and 2.5%.

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