European shares fell in early trade on Tuesday, with banks giving up some recent gains, and as investors awaited more third-quarter results, Reuters reported. At 0833 GMT, the FTSEurofirst 300 index of top European shares was down 0.4 percent at 1,001.16 points. On Monday, it rose 0.7 percent to its highest close since Sept. 23, boosted by results at Philips. The European benchmark index is up more than 55 percent from its lifetime low of March 9, as investors have become more confident on the prospects of economic recovery. "There may be some corrections in this market, but you're better off being in the market, for further gains," said Bernard McAlinden, investment strategist at NCB Stockbrokers. "Economic data is still OK, and valuations are still OK." Banks were among those taking most points off the index. Deutsche Bank fell 1.6 percent as traders cited market speculation that Germany's biggest bank may be planning a capital increase. Rumours of a capital increase at Deutsche Bank were triggered by remarks made by Chief Executive Josef Ackermann, who said on Monday the banking industry as a whole needed to be better capitalised. BNP Paribas, Banco Santander, Barclays, BBVA, Credit Suisse and UniCredit were 1.2 to 2.8 percent lower. Banks are still up nearly 170 percent from the lows of March. Miners also fell, hit by the falling price of copper, although the sector decline was partially offset by strength in gold, which hit a fresh high of $1,063.60 an ounce. Antofagasta, Lonmin and Rio Tinto fell between 1 and 2.5 percent. Among individual shares, Vodafone rose 0.9 percent, building on gains in the previous session, when Deutsche Bank reiterated its "buy" rating. Across Europe, Britain's FTSE 100, Germany's DAX and France's CAC-40 fell between 0.2 and 0.3 percent, following a 0.6 percent higher close for Japan's benchmark Nikkei 225 on Tuesday. Looking ahead, investors are expected to study Germany's ZEW Index, due at 0900 GMT, while later in the day focus will turn to fresh earnings reports from the United States. Earnings were due later from Johnson & Johnson and, after the market closes, from Intel Corp. Bellwethers to report later in the week include Citigroup, Bank of America, Goldman Sachs, JPMorgan, Google and General Electric.
