Europe stocks slide as Moody's cuts Ireland to junk

PARIS: European stocks slipped in early trade on Wednesday, retreating for the fourth straight session as Moody's downgrade of Ireland's credit rating to junk fuelled jitters over the euro zone debt crisis.

Reassuring macroeconomic data from China, however, helped limit the losses, with heavyweight mining shares such as Rio Tinto and Xstrata rallying along with metal prices.

At 0705 GMT, the FTSEurofirst 300 index of top European shares was down 0.3 percent at 1,088.22 points.

"The news on Ireland is a bit of a surprise, but shouldn't have much impact overall on stocks, judging by the reaction on the euro," said Lionel Jardin, head of institutional sales at Assya Capital in Paris.

L'Oreal tumbled 5.5 percent after posting disappointing quarterly sales.

Copyright Reuters, 2011