European shares fell in early trade this morning, snapping a four-session winning run as rising oil prices fuelled inflation concerns and mining and banking shares fell.
By 0705 GMT, the pan-European FTSEurofirst 300 index was down 0.6 per cent at 1,369.75 points. The index gained about 2.5 per cent in the past four sessions, mainly helped by buoyant commodity stocks.
It is up about 3 per cent since the beginning of the month.
Oil extended its rally past $127 a barrel, driven by renewed fears of supply disruption. By 0705 GMT, U.S. light crude for June were up 26 cents at $127.31 a barrel.
Surging energy prices boosted German producer price inflation to a 20-month high in April, Federal Statistic Office data showed today.
Mining stocks such as BHP Billiton fell 2.6 per cent and Rio Tinto fell 1.9 per cent, while Anglo American declined 1.7 per cent.
Banking shares fell, with Barclays down 1 per cent after a media report the bank was considering a takeover bid for a rival and could try to buy an investment bank unit. Barclays was not immediately available to comment.
Reuters