* FTSEurofirst 300 down 0.3 pct after Monday's 3-mth high
* Miners, financials among top decliners
* BMW jumps 4.6 percent after strong results
* For up-to-the-minute market news, click on []
By Atul Prakash
LONDON, Aug 3 (Reuters) - European equities retreated from a
three-month peak in early trade on Tuesday as investors took
profits from the previous session's sharp bounce, while a fall
in key base metals prices dragged down mining stocks.
At 0830 GMT, the FTSEurofirst 300 <> index of top
European shares was down 0.3 percent at 1,067.91 points after
falling to a low of 1,065.44 earlier in the session. The index
surged 2.6 percent on Monday to hit a three-month closing high.
Losses, however, were capped as more company results
surprised investors on the positive side, raising optimism for a
strong earnings season. The market awaited more macro-economic
numbers this week for near-term direction.
"We will remain extremely data-sensitive. The U.S. non-farm
payrolls figures this Friday certainly are the big events for
this week," said Keith Bowman, equity analyst at Hargreaves
Lansdown.
"Earnings have been broadly positive. Companies seem to be
cautiously optimistic going forward and we certainly see the
level of cash held by corporations improving dramatically."
German luxury carmaker BMW <BMWG.DE> jumped 4.6 percent
after the company said profitability at its core automotive
division soared in the second quarter, thanks to rising volumes
and better pricing. []
Europe's biggest mail and express delivery company, Deutsche
Post DHL <DPWGn.DE>, rose 3.2 percent after it raised its 2010
outlook. [].
Miners were among the top decliners, as prices of key base
metals slipped. BHP Billiton <BLT.L>, Anglo American <AAL.L> and
Rio Tinto <RIO.L> fell 0.6 to 0.8 percent.
But mining group Xstrata <XTA.L> was up 0.3 percent. The
company said it would pump over $5 billion into new mines and
keep targeting organic growth rather than acquisitions, after
more than doubling first-half earnings per share.
[]
Investors awaited U.S. pending homes sales data for June,
due at 1400 GMT, and weekly retail sales numbers, due at 1255
GMT, for near-term market direction.
"If this week's economic figures point towards a recovery in
consumer spending, then maybe the market is going to go higher,"
said Koen De Leus, economist at KBC Securities.
"In the short term, the market is going to be supported by
very good results. But after that, I suspect macro-economic data
is going to take over and, in my view, the numbers are going to
disappoint."
TECHNICAL OUTLOOK
The Euro STOXX 50 <>, the euro zone's blue chip
index, fell 0.2 percent to 2,817.13 points. It climbed 2.9
percent in the previous session and closed above its 200-day
moving average and a 61.8 percent Fibonacci retracement of its
fall from a high in April to a low in May.
The index hovered slightly above the retracement level of
2,806 and the moving average of 2,798.46 and a failure to hold
the levels could trigger further sell-offs in the near term.
On the downside, the index could find strong support at
around 2,586 points -- a low level hit in July.
Financials also fell, with the STOXX Europe 600 banking
index <.SX7P> falling 0.7 percent. HSBC <HSBA.L>, Lloyds
<LLOY.L> and Societe Generale <SOGN.PA> fell 1.1 to 2.5 percent.
Among individual shares, BP <BP.L> was down 0.5 percent. It
is still hoping to attempt the first of two operations to
permanently plug its ruptured Gulf of Mexico well on Tuesday
despite the technical delay of a crucial test. []
Optimism about the planned "static kill," which will involve
the injection of drilling mud into the top of the well, helped
fuel a rally in BP and other energy shares on Monday despite
reports that U.S. regulators are investigating insider trading
in the British energy giant's stock.
Across Europe, the FTSE 100 <> fell 0.6 percent,
Germany's DAX <> was flat and France's CAC 40 <> was
down 0.3 percent.
(Editing by David Cowell)
