European shares fell from 15-month closing highs by midday on Wednesday, with miners slipping on concerns about China reining in monetary policy, though drugmakers gained from doubts on U.S. healthcare reform.
At 1209 GMT, the pan-European FTSEurofirst 300 index of top shares was down 0.6 percent at 1,062.35 points, having finished the previous session at its highest close since early October 2008.
Chinese banking authorities have instructed some major banks to curb their lending over the rest of this month after an early burst of credit.
China's key stock index was down 2.9 percent.
"People have got nervous overnight with the comments from China," said Georgina Taylor, equity strategist, Legal & General Investment Management. "There haven't been enough earnings to negate that, to give more of a micro focus.
"I think the market will go higher during earnings season, and then maybe think more about the policy risk further out."
Miners fell sharply as metal prices weakened. Copper fell more than 1 percent and platinum retreated from a 17-month high.
Anglo American, Antofagasta, BHP Billiton, Eurasian Natural Resources Corporation, Lonmin, Rio Tinto and Xstrata fell between 2.2 and 3.5 percent.
Banks were under pressure. Bank of America's shares fell in premarket trade after its results.
Investors will also eye results at Morgan Stanley and Wells Fargo, as well as U.S. housing starts and building permits at 1330 GMT.
Barclays, Societe Generale, UBS and UniCredit fell between 1.3 and 2.3 percent.
Greek banks extended recent falls, on continued worries about the country's economic position. Bank of Piraeus and National Bank of Greece, down 5.3 and 4.2 percent respectively, were among the fallers.
On the upside, drugmakers gained after a Republican win in the U.S. Senate race in Massachusetts robbed the Democrats of the crucial 60th Senate vote needed to pass healthcare reform.
GlaxoSmithKline, Novartis and Sanofi Aventis gained 0.7 to 1 percent.
Shire gained 3.6 percent after an upgrade by JP Morgan. "The odds of major U.S. healthcare reform, or something that's not to the Republicans liking, is now looking less than 50 percent — and that's going to help the pharmaceutical companies," said Jefferies analyst Jeffrey Holford.
TECHS GAIN
Dutch chip equipment maker ASML rose 4.5 percent after fourth-quarter new orders beat expectations as the market continued to improve.
Tech companies also benefitted from an upbeat earnings statement from IBM. Late on Tuesday, the IT services giant raised its 2010 profit target and reported a stronger-than-expected 9 percent increase in fourth-quarter earnings
UK software maker Sage rose 1.1 percent. Cap Gemini rose 2.3 percent.
Across Europe, the FTSE 100 index, Germany's DAX and France's CAC 40 were down between 0.3 and 0.5 percent.
The European benchmark is up 65 percent from its lifetime low of March 9, as several major economies have emerged from recession. Governments and central banks worldwide have implemented stimulus measures to boost economies.
The Bank of England's Monetary Policy Committee voted unanimously for no change in its policy of quantitative easing and record low interest rates, minutes of its meeting, released on Wednesday, showed. The MPC also said that Britain's budget deficit needed to be reduced and said the pace and extent of fiscal tightening would affect its decisions.
The number of unemployed Britons fell for the first time in 18 months, official data showed.
