(Corrects to remove reference to biotechs in cross-head)
* FTSEurofirst 300 down 1.1 pct
* Miners fall as copper prices retreat
* Investors await release of Fed minutes
* For up-to-the-minute market news, click on []
By Brian Gorman
LONDON, Oct 12 (Reuters) - European shares fell in early
trading on Tuesday, tracking a decline in Tokyo and depressed by
a drop in mining stocks on the back of retreat in the price of
copper and other metals.
Investors are waiting for the U.S. Federal Reserve's release
of the minutes from its Sept. 21 meeting, due at 1800 GMT, as
well as a batch of blue chip U.S. corporate earnings reports.
At 0902 GMT, the FTSEurofirst 300 <> index of top
European shares was down 1.1 percent at 1,062.71 points, after
rising 0.3 percent in the previous session to its highest close
in two weeks.
Copper prices slipped back, partly on worries of technical
indicators showing that the market is overbought. Miners to fall
included Anglo American <AAL.L>, BHP Billiton <BLT.L>, Rio Tinto
<RIO.L> and Xstrata <XTA.L>, down between 1.5 and 2.2 percent.
Steelmaker ArcelorMittal <ISPA.AS> fell 2.8 percent after
rival Posco <005490.KS> signalled a weak outlook.
"Commodity prices are just giving back some of their recent
gains," said Bernard McAlinden, investment strategist at NCB
Stockbrokers in Dublin.
"The U.S. market is waiting for the Fed minutes for a
recheck of the likelihood of quantitative easing in November.
The markets have been higher on the basis that the Fed would
engage in further asset purchases, and this would encourage
other central banks to do the same."
Energy companies fell as the dollar edged up on
short-covering. BP <BP.L>, Total <TOTF.PA> and Royal Dutch
Shell <RDSa.AS> fell between 1.3 and 2 percent.
Oil explorer Soco International <SIA.L> plunged 19 percent
after the company said a closely-watched appraisal well in
Vietnam failed to flow at commercial rate
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC40 <> fell between 1.1 and 1.6
percent.
The Euro STOXX 50 <>, the euro zone's blue chip
index, fell 1.4 percent to 2,751.58 points, moving back towards
a key resistance level, the 50 percent retracement of the
index's fall from a peak in April to a low in May.
BROKER NEGATIVITY
Dental implant makers Nobel Biocare <NOBN.VX> and Straumann
<STMN.S> fell 8.3 and 7.7 percent respectively after negative
comments from Morgan Stanley and UBS.
Japan's Nikkei average fell 2.1 percent on Tuesday, dragged
lower by a climb in the yen to fresh 15-year highs against the
dollar and a surprisingly weak profit forecast from popular
stock Fast Retailing <9983.T>.
"On the one hand, the market wants QE because it's deemed to
be a stimulant to financial markets. But if there were a bunch
of indicators that showed the QE wasn't needed, that wouldn't be
bearish," said Bill Dinning, head of strategy at Aegon Asset
Management in Edinburgh.
"What form QE takes remains to be seen. The (Fed) minutes
will be important in setting the scene. We'll see whether the
tone is about downside risk. But three weeks (the time until the
next Fed meeting) in these markets is an eternity. And clearly
there is a debate going on, just as we have with the Bank of
England."
As third-quarter U.S. earnings season gets into full swing,
semiconductor bellwether Intel <INTC.O> reports after the close
of the market.
(Editing by David Holmes)
