LONDON: European shares fell on Monday as investors worried about high oil prices hurting company earnings and global growth, and as the Group of 20 leading economies told Europe it must commit more money to fight the debt crisis before seeking their help. At 0944 GMT, the FTSEurofirst 300 index of top European shares was down 0.8 percent at 1,068.54 points. The index, which hit a seven-month high last week is still up 6.7 percent this year but is in danger of falling below a key technical level of 1,061.6, the 61.8 percent retracement of its fall from a 2011 high hit in February, to a low in September. Crude oil has hit record highs in euro terms in recent days, sparking worries about global growth prospects, though it slipped below $125 on Monday and snapped five days of gains with investors booking profits. "The oil price is very definitely in focus. And the threat of world recession would unsettle equities. The industrials may suffer," said Jeremy Batstone-Carr, strategist at Charles Stanley. The auto sector fell 3.3 percent. The sector is still the strongest performer in 2012, up 28 percent. HSBC Holdings, Europe's biggest bank, fell 1.5 percent after annual results. It made a $21.9 billion profit last year, the largest among western banks, as its strength in Asia helped it cope with a euro zone debt crisis that has plunged many rivals into huge losses. The stock is up more than 15 percent in 2012. Euro zone banks fell 1.6 percent, having also enjoyed a strong run. The sector has been boosted by the European Central Bank's Long Term Refinancing Operation, providing cheap funding. The ECB will lend nearly half a trillion euros to banks at rock-bottom rates this week through the latest three-year refinancing operation, Reuters polls showed. The LTROs have also been a key factor in boosting the wider market, but analysts said recent gains may be short-lived. "What happens when central banks have to contemplate a return to normality? It's hard to see a catalyst to drive markets higher. Better economic data (such as improving labour U.S. labour figures) is already priced in," Batstone-Carr said. Strategists also continued to express concern about the euro zone peripheral economies, even after Greece secured a bailout deal last week to avoid a disastrous default. Leading economies told Europe it must put up extra money to fight its debt crisis if it wants more help from the rest of the world, piling pressure on Germany to drop its opposition to a bigger European bailout fund. "Does Germany really have the appetite to carry on propping up the rest of the euro zone? Investors are happy taking money off the table. Where is the upside going to come from?," said Manoj Ladwa, a trader at ETX Capital. However, Ladwa pointed to "some good profit numbers" produced on Monday. Business supplies distributor Bunzl gained 2.6 percent after beating expectations with an 11 percent rise in full-year profit, as strong growth in continental Europe and North America offset declining sales in Britain and Ireland. But the European earnings season has not been as upbeat as that of the United States. Of the companies in the STOXX 600 that have reported results, 51 percent have missed forecasts, according to Thomson Reuters StarMine data. That compares with just 32 percent for the Standard & Poor's Index, and has helped Wall Street outperform and hit its highest level in nearly four years.

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