LONDON, Sept 14 (Reuters) - European shares slipped on Tuesday, pausing for breath a day after a key index closing at a 4-1/2-month high, with some caution ahead of data from Germany and the U.S. which is set to reflect the pace of recovery.
By 0710 GMT, the pan-European FTSEurofirst 300 index of top shares eased 0.1 percent at 1,087.42 points, after closing on Monday at its highest level since late April in an almost uninterrupted three-week rally.
Banks were among the fallers, reversing gains from the previous session, with Societe Generale, Barclays and HSBC off 0.3 to 0.5 percent.
Investors' will closely watch data including the German ZEW index for September and U.S. retail sales in August to gauge the strength of the economic recovery.
"These indicators are key and if they surprise on the upside the stock market rally could go further but if they disappoint then we might have a revision downwards not only for the economy but for company profits as well," said Koen de Leus, strategist at KBC Securities. (Reporting by Harpreet Bhal)