LONDON: European shares edged lower in early trade on Wednesday, ahead of a key vote on austerity measures in Portugal that could see the country's government brought down, and amid continued tension in the Middle East.
At 0804 GMT, the FTSEurofirst 300 index of top European shares was down 0.3 percent at 1,104.14 points, after falling 0.1 percent in the previous session.
Portugal Prime Minister Jose Socrates has said he will resign if his austerity measures plan is defeated. He has said its rejection would force the debt-laden country to follow Greece and Ireland and seek an international bailout, which he opposes.
"Oil price is the more persistent worry, with tensions in North Africa," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin, who played down the significance of Portugal's crisis. "The only thing big enough to be disruptive is the Spanish situation and you're not getting any worse news coming out of Spain."
J Sainsbury, Britain's third-biggest supermarket group, fell 6 percent after missing fourth-quarter sales forecasts, adding to signs of a slowdown in consumer spending growth as inflation climbs and government spending cuts bite.
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