At 1427 GMT, the FTSEurofirst 300 index of top European shares was down 0.04 percent at 1,075.20 points. Earlier in the session, the index was as high as 1,088.79. Euro STOXX 50 volatility index rose 2.1 percent, hitting a fresh three-month high. The higher the index, the lower the appetite for risk.

Shares in Italian banks UniCredit SpA and Intesa Sanpaolo fell 5.4 and 4.7 percent respectively, as worries circulated about their capital positions and the deepening euro zone crisis.

Copyright Reuters, 2011