European shares end lower as crude prices rise

European shares closed lower yesterday, retreating from three-year highs as crude prices rallied back towards $60 a barrel and conflicting signals from the bond market prompted caution from some equity investors.

German software giant SAP weighed, falling two per cent after investment bank UBS cut its rating on the stock to "neutral" from "buy".

By 1530 GMT, the FTSEurofirst 300 index of pan-European blue chips was unofficially closed 0.3 per cent lower at 1,150 points on moderate turnover of around 2.2 billion shares.

The narrower DJ Euro Stoxx 50 index fell 0.3 per cent to 3,207 points.

The Eurofirst 300 has rallied almost 10 per cent since hitting a 2005 low in April as solid earnings and low interest rates offset high commodity prices.