European shares dip early, Nestle drops 2 percent

PARIS Thu Feb 13, 2014 3:14am EST

PARIS Feb 13 (Reuters) - European shares inched lower in early trade on Thursday, halting their week-long rally, with Nestle falling after warning about its sales outlook.

Shares in the food giant dropped 2.0 percent after it said it expected another challenging year, after price pressures in Europe and weaker emerging market demand slowed sales growth in 2013.

At 0807 GMT, the FTSEurofirst 300 index of top European shares was down 0.3 percent at 1,323.35 points, retreating for the first time in seven sessions.

Banking stocks trimmed recent gains, with BNP Paribas losing 3 percent as it reported a huge drop in quarterly profit after booking a $1.1 billion litigation provision in case it is fined for a breach of U.S. sanctions.