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Europe shares edge lower; miners dip on China data

Published 01/20/2011, 03:15 AM
Updated 01/20/2011, 03:20 AM

LONDON, Jan 20 (Reuters) - European shares edged lower on Thursday, pressured by mining stocks, as stronger-than-expected Chinese growth and inflation figures raised worries about further tightening from the world's top commodity consumer.

At 0812 GMT, the FTSEurofirst 300 index of top European shares was down 0.1 percent at 1,150.83 points after falling 1.3 percent to its lowest close in more than a week in the previous session.

"A lot of Asian economies, and especially China, is overheating. People have invested heavily in commodity shares and any disappointing news might provoke a decent correction," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.

China, the world's second-biggest economy, is expected to focus on controlling inflation through tighter monetary policies after its economy maintained a strong growth momentum in the fourth quarter and inflation slowed less than expected.

Miners were among the top decliners, with the STOXX Europe 600 Basic Materials index falling 0.9 percent and Anglo American down 1.8 percent.

(Reporting by Atul Prakash)

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