London - European shares fell on Wednesday, retreating after two straight days of gains, as a drop in Austrian bank Erste knocked back financial stocks.
Mixed Chinese economic data, along with a decision by the World Bank to slash its 2016 global economic growth forecast, also gave some traders a reason to take a negative view on the outlook for stock markets.
“The Chinese export figures looked a bit disappointing, and the World Bank's cut to its forecasts is another reason to be a bit bearish on the markets,” said Berkeley Futures' associate director Richard Griffiths.
The pan-European STOXX 600 and FTSEurofirst 300 indexes both fell 0.6 percent, after having risen for the last two days.
Erste fell 3 percent, after insurance company Uniqa said late on Tuesday that it would sell around 17.4 million Erste shares.
The shares of payment systems company Ingenico also fell 4.8 percent, impacted by a slump in its rival VeriFone after VeriFone posted lower-than-expected earnings.
However, Athens' benchmark ATG equity index edged up, with the German government set to recommend that the European Stability Mechanism (ESM) rescue fund releases the next tranche of aid to Greece, according to a letter from Deputy Finance Minister Jens Spahn to the budget committee seen by Reuters.
REUTERS