LONDON Aug 28 European shares edged down from one-month highs on Thursday following uncertainty regarding the European Central Bank's possible move to ease policy to stimulate growth in the region.
ECB sources said late on Wednesday that the central bank was unlikely to take new policy action next week unless August inflation figures on Friday show the euro zone sinking significantly towards deflation.
Investors awaited preliminary German inflation data due later in the session for hints about how soft the euro zone numbers might turn out. Other data releases include German unemployment, Italian retail sales and euro zone economic sentiment indicators.
At 0709 GMT, the pan-European FTSEurofirst 300 index was down 0.2 percent at 1,375.48 points after hitting a one-month peak in the previous session.
Optical equipment maker Essilor rose 5.5 percent after it forecast full-year revenue growth of more than 13 percent excluding currency effects, after first-half sales rose 7.9 percent. (Reporting by Atul Prakash; Editing by Sudip Kar-Gupta)