European shares fell on Thursday, with miners among the casualties, as investors worried that China will have to undertake further monetary tightening to combat inflation after strong growth numbers. The pan-European FTSEurofirst 300 index of top shares fell 1.1 percent 1,139.63 points, its lowest close since January 10, after falling 1.3 percent on Wednesday.
The news on China, the world's biggest metals consumer, caused metals prices to fall. They were also pulled down by a stronger dollar. Miners to fall included heavyweights Anglo American, BHP Billiton and Rio Tinto, down between 3.2 and 4.7 percent. Among energy companies, BP and BG fell 2.4 and 2.3 percent respectively, as crude prices slipped. Carmakers also featured among the worst performers, with German companies hit by worries exports to China would ease.
BMW and Daimler fell 4.1 percent and 3 percent respectively. Italy's Fiat dropped 3.8 percent after J.P. Morgan cut its rating to "underweight" from "neutral"; Fiat Industrial fell 5 percent. Across Europe, Britain's FTSE 100 fell 1.8 percent, while Germany's DAX and France's CAC40 fell 0.8 and 0.3 percent respectively. Spain's benchmark IBEX rose 0.8 percent.
British low-cost airline easyJet slumped 16.2 percent after saying first-half losses might double due to higher fuel prices and tough economic conditions, after it took a 31 million pound hit from the big freeze and strikes late last year. Ryanair fell 6.5 percent. On the upside, Dexia rose 5 percent after the Franco-Belgian banking and insurance group said it was finalising a funding deal with French mail operator and financial services provider La Poste.