European shares slipped on Tuesday, as investors worried about the outlook for higher interest rates in the eurozone and as tensions in the Middle East intensified. The pan-European FTSEurofirst 300 index of top shares closed down 0.1 percent at 1,107.22 points, snapping a three-day winning run.
Among individual stocks, Metro, the world's fourth biggest retailer, fell 4.7 percent after saying risks to economic recovery had risen after the Japanese earthquake and the Libyan uprising, though it reported forecast-beating 2010 earnings.
Energy companies, however, helped to limit the index's losses, with crude oil prices briefly topping $116 a barrel as investors worried about potential supply disruptions from the conflict in Libya and spreading civil unrest in the Middle East. ENI, Royal Dutch Shell and BG rose between 1 percent and 1.6 percent.
As well as supply disruption factors, strategists also cited a stronger demand outlook for oil. Across Europe, Britain's FTSE 100, Germany's DAX and France's CAC40 fell between 0.3 and 0.5 percent. Peugeot fell 2.7 percent after it said diesel engine production will be hit from Wednesday by disruption to electronic component supplies following the Japanese earthquake disaster.
Others in the sector to fall included BMW and Renault, down 1.5 and 2.6 percent respectively. But the insurance sector, which had been heavily sold off after the Japan disaster, added to gains made on Monday. Prudential rose 1.5 percent on a bullish note from UBS.
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