European shares retreated from a six-month high on Friday, in a mild technical pullback after the previous session's strong rally and with Greek debt talks still firmly in focus, although equities still remain on course for their sixth week of gains.
At 0809 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was 0.3 percent lower at 1,048.38 points after gaining 1.2 percent in the previous session, the highest since early August.
We could see the market going higher if there was a positive outcome as far as the Greek debt talks are concerned, said Keith Bowman, equity analyst at Hargreaves Lansdown, although he cautioned a deal would not solve the broader issues of fiscal support across the union.
Greece and its private creditors made progress on Thursday in talks on restructuring its debt, and they will continue negotiating on Friday. Athens needs a deal quickly to avert a chaotic default when a major bond redemption comes due in March.
The STOXX Europe Basic Resources index <.SX7P>, which surged 3.3 percent in the previous session on encouraging U.S. economic data, fell 1 percent as some investors took profits ahead of the U.S. GDP numbers, due at 1330 GMT. The figures may cement the view that the U.S. economy is gradually recovering.
(Reporting by Atul Prakash)