* FTSEurofirst 300 falls 0.4 pct
* Barclays down after Qatar sells stake
* For the latest stocks news click on []
By Brian Gorman
LONDON, Oct 20 (Reuters) - European shares fell in early
trade on Tuesday, slipping back from their highest in more than
a year, with Barclays <BARC.L> leading banks lower as a major
shareholder cut its stake.
At 0846 GMT, the FTSEurofirst 300 <> index of leading
European shares was down 0.4 percent at 1,022.58 points.
On Monday, the index rose 1.7 percent to its highest close
since Oct. 3, 2008. The index is still up more than 58 percent
from its lifetime low of March 9, as investors have become more
confident on the prospects of economic recovery, and as
corporate earnings have beaten forecasts.
"I wouldn't read anything too much (into the fall for shares
on Tuesday)," said Andy Lynch, fund manager at Schroders. "It's
a perfectly normal reaction after such a strong run-up.
"The technical analysts I talk to are still convinced that
there is momentum behind the rally."
Banks, strong risers on Monday, lost ground.
Barclays <BARC.L> fell 5 percent after Qatar said it was
selling 379.2 million shares in the British bank, worth over 1.3
billion pounds ($2.1 billion), the second major Middle East
investor set to make a big profit by selling down its stake this
year. []
Credit Suisse <CSGN.VX>, HSBC <HSBA.L>, Royal Bank of
Scotland <RBS.L>, Societe Generale <SOGN.PA> and UBS <UBSN.VX>
fell between 1 percent and 2.2 percent.
But Swedbank <SWEDa.ST> rose 2.2 percent. The company posted
a third consecutive quarterly loss but said it saw light at the
end of the tunnel as the number of loans going bad in the
recession-hit Baltic region was falling. []
And shares in UK food retailer J.Sainsbury <SBRY.L> gained
from the Qatari Barclays sale, rising 4 percent. The sale stoked
talk Qatar will use a big profit to make a move on Sainsbuiry.
Qatar owns 26 percent of Sainsbury and the retailer's shares
jumped by a fifth last Thursday on talk the sovereign wealth
fund was planning a renewed offer for it, after a previous bid
attempt failed in 2007. []
The dollar fell to almost 1.50 against the euro, supporting
gold prices rise to more than $1,065 an ounce, and helping crude
oil <CLc1> hit $80, before it fell back.
Energy companies gave up earlier gains. Total <TOTF.PA>, BP
<BP.L> and ENI <ENI.MI> fell between 0.6 and 0.7 percent.
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC-40 <> fell between 0.4 and 0.5
percent.
AHOLD FALLS
Dutch grocer Ahold <AHLN.AS> fell 3.1 percent after posting
a slowdown in quarterly sales growth in line with expectations,
hit by deflation in food prices and shoppers switching to
cheaper goods, especially in the United States. []
LVMH <LVMH.PA>, the world's biggest luxury goods group, fell
1.7 percent. After the market closed on Monday, the company
reported that third quarter sales fell 0.6 percent from last
year. []
Japan's Nikkei average <> rose 1 percent to hit its
highest close in three weeks on Tuesday, buoyed by tech shares
such as Kyocera Corp <6971.T> after a wave of solid U.S.
earnings helped underscore that the economic recovery continues.
Texas Instruments <TXN.N> and Apple <AAPL.O> posted
forecast-beating results after the close on Monday, reflecting
improving consumer sentiment.
"Apple and Texas, and stronger gold and oil" would help
European shares, said Bernard McAlinden, investment strategist
at NCB Stockbrokers.
"And as long as the 10-year Treasury bond yield stays
stable, you're in a sweet spot."
Later in the session, investors' attention will turn to
housing starts and building permits data in the United States.
Companies reporting include Pfizer <PFE.N>, Caterpillar
<CAT.N> and BNY Mellon <BK.N>.
(Editing by Hans Peters; Editing by Hans Peters)
