LONDON, March 10 (Reuters) - European shares declined on Thursday as Moody's downgrade of Spain's rating raised concerns about the health of peripheral euro zone economies, while higher oil prices on Libya unrest stoked worries about global growth.
At 0807 GMT, the FTSEurofirst 300 index of top European shares was down 0.5 percent at 1,139.25 points after falling 0.2 percent in the previous session.
"The troubles in the peripheral economies have resurfaced and it's certainly going to hurt sentiment. If they are forced to come up with more austerity measures, that will hurt their economies further," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.
"The high oil price is another problem."
Moody's slashed Spain's sovereign credit rating by a notch and warned of further cuts, saying the country's plans to clean up the battered banking sector will cost more than the government expects and will add to its debt burden.
Miners were among the top decliners as weak Chinese import data cast doubt on demand for raw materials. The STOXX Europe 600 Basic Materials index fell 1.7 percent.
(Reporting by Atul Prakash)