European shares fell on Wednesday, from a five-month high, after Fitch Ratings warned that the European Central Bank should take a more active role in buying troubled euro zone debt to avert a collapse of the euro and major indices hit resistance levels.
The worst performing sectors were the STOXX Europe 600 Food & Beverage index <.SX3P> and the STOXX Europe 600 Oil & Gas index <.SXEP>, both down 2 percent, having hit oversold territory after gains on Tuesday.
The Relative Strength Index (RSI) - a technical momentum indicator that determines overbought and oversold conditions - for the <.SXEP> had hit 71.91 on Tuesday, while the <.SX3P> had risen to 73.08 - 70 and above is considered overbought.
Fitch is trying to say, someone needs to step up to the plate and help, Joe Rundle, head of trading at ETX Capital, said. People are talking about recession, consumer confidence is low and the worry is how this will filter into companies.
Volume is low and the money is only from short-term investors. Investors are looking at resistance and support levels and trading within those ranges.
The pan-European FTSEurofirst 300 <.FTEU3> index of top shares was down 0.7 percent at a provisional close of 1,020.12 points after touching 1,029.32 a five-month high.
(Reporting by Joanne Frearson)