European shares edge down; focus on economic data

                                
 * FTSEurofirst 300 sheds 0.2 percent 
                                
 * German ZEW index disappoints; U.S. retail sales awaited
                                
 * Banks among decliners, reversing previous sessions gains 
                                
 * For up-to-the-minute market news, click on [STXNEWS/EU]
                                
 
                                
 By Harpreet Bhal 
                                
 LONDON, Sept 14 (Reuters) - European shares retreated on
Tuesday, as disappointing economic data from Germany heightened
jitters over the pace of recovery, with investors awaiting data
from the U.S. for further evidence on the health of the economy.
                                
 Germany's ZEW sentiment index for September fell to minus
4.3 points, from 14 points in August. Investors had expected a
fall to 10 points. [ID:nDEP003349] 
                                
 By 0909 GMT, the pan-European FTSEurofirst 300 <.FTEU3>
index of top shares fell 0.2 percent to 1,085.66 points, in a
choppy session after closing on Monday at its highest level
since late April.
                                
 The FTSEurofirst 300 had rallied almost uninterruptedly in
the past three weeks and is up nearly 5.7 percent this month, on
track to post its best monthly gain since March.
                                
 Banking shares were lower, with the STOXX Europe 600 banking
index <.SX7P> down 0.2 percent, reversing the previous session's
gains when the sector rallied on relief that the Basel III bank
capital rules were not as tough as feared.
                                
 Credit Suisse's <CSGN.VX> chief executive told a Swiss
newspaper that the lender does not need a capital hike to fulfil
new global bank rules and does not foresee significant changes
to its dividend and growth policy. [ID:nLDE68D06G] The stock was
down 0.4 percent.
                                
 Investor's attention is likely to focus on further economic
data, including U.S., retail sales data for August is due at
1230 GMT. 
                                
 Analysts said the data will be watched closely due to some
expectations in recent weeks of a brightening economic outlook
for the world's largest economy after U.S. private payrolls and
manufacturing growth in August exceeded market expectations.
                                
 "These indicators are key and if they surprise on the upside
the stock market rally could go further but if they disappoint
then we might have a revision downwards not only for the economy
but for company profits as well," said Koen de Leus, strategist
at KBC Securities. 
                                
 Adding to the cautious view on economic recovery, house
prices in England and Wales suffered their most widespread falls
since May 2009 last month, while consumer price inflation held
steady in August. [ID:nSLADKE6CK] [ID:nAHLDKE66R] 
                                
 
                                
 SUEZ ENVIRONMENT GAINS
                                
 Broker notes helped provide some direction for individual
stocks, with Suez Environment <SEVI.PA> among the top gainers
after Morgan Stanley upgraded its recommendation on the
environmental services company to "overweight" from "neutral".
The stock rose 1.9 percent.
                                
 On the downside, Philips <PHG.AS> fell 2.3 percent after the
Dutch electronics company unveiled growth targets which analysts
said were not ambitious. [ID:nLDE68D09V]
                                
 Fashion chain Next <NXT.L> shed 1.3 percent as Societe
Generale cut its rating on the firm to "sell" from "hold" ahead
of H1 results on Wednesday.
                                
 Across Europe, Britain's FTSE 100 <.FTSE>, Germany's DAX
<.GDAXI> and France's CAC 40 <.FCHI> were down 0.1 to 0.2
percent.
 (Editing by Hans Peters)