European shares fell by midday on Wednesday, snapping a four-session winning streak and shrugging off better-than-expected German economic data, with oil and gas stocks leading the losers.
By 1030 GMT, the pan-European FTSEurofirst 300 index of top shares was down 0.4 percent at 974.65 points, having been up at 982.07 points earlier.
The index is up 17 percent this year, after falling 45 percent in 2008, and has jumped 51 percent since it reached a record low in March.
"The past has shown that German macroeconomic data sometimes do not have the necessary clout to massively inspire markets," said Joerg Rahn, chief investment officer at wealth management company Marcard, Stein & Co.
The business climate index of Germany's Ifo, a Munich-based think tank, rose to 90.5 from an upwardly revised 87.4 in July.
"The Ifo figures did not have a momentum effect, despite them being very good. But one also has to acknowledge that the markets are moving on high levels and that people may be following the strategy of 'selling on good news,'" Rahn said.
Oil and gas stocks took most points off the index and the DJ STOXX European Oil&Gas Index was 1.4 percent lower.
UK-based oil explorer Tullow Oil lost 4 percent after it said interim profits dropped 83 percent on lower oil prices and production.
BG Group, BP, Royal Dutch Shell and Total were all 0.8 to 1.4 percent lower.
MINERS DOWN
Miners were lower, too, with the DJ STOXX European Basic Resources Index as the biggest sectoral decliner, down 1.9 percent.
Copper miner Antofagasta fell 4.2 percent after it posted lower-than-expected earnings per share in the first half and warned prices were likely to remain volatile in the second half.
"All numbers (are) well down on 2008 because of copper price trend but if today's copper price is maintained for a few months, 2H09 will be well up on 1H09," Citigroup wrote in a note.
BHP Billiton, Xstrata and Rio Tinto were down 1.2 to 3.6 percent.
Among other individual movers, French bank Natixis soared 32 percent after BPCE, formed from the merger this year of Caisse d'Epargne and Banque Populaire, said it will guarantee roughly 35 billion euros worth of toxic assets at the investment bank.
Alcatel-Lucent surged 15.7 percent as traders cited market talk of a possible bid from a Chinese manufacturer of telecom gear and a rating upgrade by Natixis.
A spokeswoman for the Franco-American firm declined to comment on the share price move. Spokespeople for ZTE and Huawei said they had not heard of any bid for Alcatel-Lucent.
Heineken, the world's third-largest brewer, gained 7.2 percent, after the company reported a better-than-expected rise in first-half operating profit, driven by cost savings.
"Later on some top down data for … the (United States) might be setting the tone," Heino Ruland, strategist at Ruland Research, wrote in a note to clients.
The U.S. Commerce Department is to release July durable goods orders at 1230 GMT, while investors also await new home sales data for July, due at 1400 GMT. Economists in a Reuters survey forecast a total of 390,000 annualized units compared with 384,000 in June.
Across Europe, the FTSE 100 index was down 0.2 percent, Germany's DAX was 0.4 percent lower and France's CAC 40 was down 0.2 percent.
