Enlarge imageLONDON (Reuters) - European shares fell in early trade on Tuesday after a strong rally in the previous session, with banking stocks retreating and commodity shares tracking weaker crude and metals prices.
At 8:09 a.m., the FTSEurofirst 300 <.FTEU3> index of top European shares was down 0.8 percent at 1,014.94 points. Banks, major gainers on Monday, slipped back. BNP Paribas
Energy companies fell as crude prices slipped towards $77 a barrel. Total
On Monday, the pan-European index rose 2.1 percent to close at 1,023.49 points, the biggest one-day percentage gain since Oct 14. The benchmark is still up more than 57 percent from its lifetime low of March 9, as investors have become more confident on the prospects for economic recovery.
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"China is down after a strong run," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin. "But we're still in a cyclical bull market."
Japan's Nikkei <.N225> fell 1 percent to hit its lowest close in four months on Tuesday as banking shares were sold on persistent worries that more financial firms would tap the market for equity financing and as a stronger yen hurt shares of exporters.
China's Shanghai Composite <.SSEC> fell 3.5 percent.
Later, investors' attention will turn to the United States, where economic data due includes a revised estimate for third-quarter GDP, and house prices.
(Reporting by Brian Gorman)
