LSE: European shares fall in early trade; Fed eyed
By Brian Gorman
LONDON, Aug 10 (Reuters) - European shares fell in early trade on Tuesday with miners sliding on weaker metals prices as the dollar strengthened ahead of a meeting of the U.S. Federal Reserve, which may signal further stimulus measures.
Weaker-than-expected Chinese import data also hurt metals prices.
The FTSEurofirst 300 index of top European shares was down 0.7 percent at 1,064.25 points at 0843 GMT, after rising 1.4 percent on Monday to its highest close since April 26.
The European benchmark index, helped by stimulus measures worldwide, is up 64 percent from a lifetime low on March 9, 2009.
The Euro STOXX 50, the euro zone's blue-chip index, fell 0.6 percent. Earlier in the session, it fell back below the 61.8 percent Fibonacci retracement of its fall to a May low from an April high.
Miners to fall included BHP Billiton, Kazakhmys , Rio Tinto and Xstrata, down 2.4-2.8 percent.
Chinese imports posted a surprising decline in apparent response to a government drive to rein in property speculation and root out obsolete manufacturing capacity.
The U.S. Fed meets on Tuesday, after the close of European markets, to consider, and may adopt additional measures to prop up a softening U.S. economic recovery.
With U.S. interest rates effectively at zero, the central bank is out of easy policy options. Top Fed officials argue, however, they can do more to fight renewed economic weakness, including reinvesting proceeds from maturing mortgage bonds back into that market.
'The market expects a significantly dovish statement from the Fed. We have priced in a concrete signal,' Lang & Schwarz strategist Giuseppe-Guido Amato said. 'If we don't get this, there will be selling pressure in the United States and then tomorrow in Europe'.
Across Europe, Britain's FTSE 100, Germany's DAX and France's CAC40 fell 0.3-0.7 percent.
In a broad-based market decline, the heavyweight banking sector, a strong performer in recent weeks, was lower. BNP Paribas, Credit Agricole and Lloyds fell 1.4-1.9 percent.
The euro was lower, having hit a three-month peak against the dollar on Friday.
With crude prices also hurt by the stronger dollar, most energy companies were lower. Total, Repsol and StatoilHydro fell 1.1-1.2 percent.
