European shares fell in early trade on Tuesday, slipping back from their highest in more than a year, with Barclays 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 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, HSBC, Royal Bank of Scotland, Societe Generale and UBS fell between 1 percent and 2.2 percent.
But Swedbank 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 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 hit $80, before it fell back.
Energy companies gave up earlier gains. Total, BP and ENI 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 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, 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 after a wave of solid U.S. earnings helped underscore that the economic recovery continues.
Texas Instruments and Apple 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, Caterpillar and BNY Mellon.
