LONDON Feb 8 European shares slipped back from
29-month highs on Tuesday, after China increased interest rates
again to fight stubbornly high inflation, raising concerns about
Stocks to fall included miners Kazakhmys (KAZ.L), Lonmin
(LMI.L) and Vedanta (VED.L), all down 1 percent.
However, some upbeat corporate news helped limit losses for
key indexes. UBS UBSN.VX rose 4.3 percent after saying it
expects to win more client money for its wealth management
business in 2011 and sees a rebound in the investment banking
The pan-European FTSEurofirst 300 .FTEU3 index of top
shares fell 0.2 percent to a provisional close of 1,174.79
points, having hit its highest close since September, 2008 in
the previous session.
Investors became nervous on the global recovery when
China's central bank said its benchmark deposit and lending
rates would be raised by 25 basis points. [ID:nTOE706030]
"The markets have been relying to some extent on emerging
markets growing for an elongated period and if that's being
called into question, that's a headwind to equity markets," said
Richard Batty, investment director at Standard Life Investments.
(Reporting by Brian Gorman)