(Clarifies first paragraph by deleting subordinate clause
'helped by a firmer dollar')
* FTSEurofirst 300 index falls 0.8 percent
* Miners slip as metal prices fall on strong dollar
* Investors await U.S. Federal Reserve statement
By Joanne Frearson
LONDON, Aug 10 (Reuters) - European shares fell on Tuesday,
as miners tracked lower metals prices and investors scaled back
expectations the U.S. Federal Reserve would announce further
steps to prop up the economy.
Speculation had been growing the Fed may adopt additional
measures to prop up a softening U.S. economic recovery. The Fed
concludes its meeting later in the day.
"There is a huge amount of concern over the outcome of the
FOMC (Federal Open Market Committee) meeting," said Peter Dixon,
economist at Commerzbank. "Investors are waiting for some
clarity before they enter the market."
The pan-European FTSEurofirst 300 <> index of top
shares closed 0.8 percent lower at 1,062.46 points.
Miners were heavy fallers on the index, with the STOXX
Europe 600 Basic Materials <.SXPP> index down 2.3 percent. Anglo
American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton <BLT.L>,
Rio Tinto <RIO.L> and Xstrata <XTA.L> fell 2 to 3 percent.
Data showing Chinese imports posted a surprising decline in
July, pointing to slowing domestic demand and economic activity,
also weighed on mining investor sentiment.
Banking stocks were also weak. Danske Bank <DANSKE.CO>,
Denmark's biggest financial group, lost 5.2 percent after the
company said it sees a challenging 2010 and that in view of the
general economic climate, loan impairment charges are likely to
remain high in 2010.
Societe Generale <SOGN.PA>, Credit Agricole <CAGR.PA> and
Royal Bank of Scotland <RBS.L> slipped 2.3 to 3.8 percent.
TUI TRAVEL DROPS
In individual stocks, travel firm TUI Travel <TT.L> dropped
10 percent after it warned that its full-year results would be
at the lower end of market expectations.
"Things could have been worse, but even where there is good
volume news the margin picture has deteriorated. Speculation
about a possible bid from TUI AG <TUIGn.DE> is likely to be the
only excitement for the foreseeable future," said KBC Peel Hunt
analyst Nick Batram.
InterContinental Hotels <IHG.L> also fell, losing 4.1
percent as analyst Ian Rennardson at house broker Bank of
America Merrill Lynch said the hotelier had seen a good quarter
but kept his underperform recommendation due to nervousness
about macro economic conditions.
Elsewhere, International Power <IPR.L> dropped 2 percent as
the power producer agreed to a reverse takeover by France's GDF
Suez <GSZ.PA>.
Across Europe, the FTSE 100 <> index was down 0.6
percent, Germany's DAX <> was 1 percent lower and France's
CAC 40 <> was down 1.2 percent.
(Reporting by Joanne Frearson; Editing by Sharon Lindores)