Leading European shares closed down yesterday in thin pre-holiday trade, slipping from a 45-month peak with Roche a notable loser on worries about its bird-flu treatment.

With little else on the corporate or economic agenda, stocks drifted through the day as investors closed positions or left early. The FTSEurofirst 300 index of top European shares closed 0.22 per cent weaker at 1,275.49 points, having briefly touched a 45-month high of 1,280.02 points earlier in the day.

The index has risen nearly 23 per cent this year thanks to bullish corporate earnings, high commodity prices boosting energy and mining stocks, relatively low interest rates and weakness in the euro helping exporters. The narrower DJ Euro Stoxx 50 index was flat while European domestic indexes were mixed as the Dow Jones industrial average in New York rose to offer support.

"Everyone has gone out to lunch and has not come back. The market then gets moved by speculative reports and the like," a trader said. Britain's FTSE 100 outperformed, rising 0.17 per cent thanks to three of Europe's standout gainers - Hilton, Vodafone and BAE Systems. Leisure group Hilton gained 2.2 per cent after confirming it has received approaches for its Ladbrokes bookmaker business.

Vodafone ticked up amid market rumours that Chief Executive Arun Sarin was about to leave and the group would exit Japan. However, the stock retreated from the day's highs as some dealers said they were sceptical. Vodafone declined to comment.