European shares retreat, Deutsche Bank slips after losses

LONDON Mon Jan 20, 2014 3:20am EST

LONDON Jan 20 (Reuters) - European shares retreated from 5-1/2-year highs on Monday, with banking shares under pressure after Deutsche Bank posted a surprise pre-tax loss and miners slipping in the wake of data showing easing Chinese growth.

Deutsche Bank fell 4.2 percent after reporting a loss of 1.15 billion euros for the fourth quarter due to heavy costs for litigation and restructuring. Deutsche Bank also warned that 2014 would be another year of challenges and reform.

The STOXX Europe 600 banking index fell 1 percent, the top sectoral faller, dragging the FTSEurofirst 300 index down 0.3 percent to 1,340.91 points by 0807 GMT. The index closed at a 5-1/2 year high on Friday.

The European mining index fell 0.8 percent after data showed Chinese growth eased to 7.7 percent in the last quarter of 2013 from 7.8 percent the previous quarter. Some analysts predict China, the world's biggest metals consumer, will keep losing momentum this year.

Trading was likely to be thin as the markets in the United States are closed on Monday for the Martin Luther King Day holiday.

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