European shares extended falls on Wednesday, after a German government official dented hopes that this week's crunch EU summit will generate a comprehensive deal to resolve the euro zone's debt crisis.

At 2:47 p.m., the FTSEurofirst 300 <.FTEU3> index of leading European shares was down 0.9 percent at 981.10 points, and had gone as low as 979.29, after earlier hitting a five-week high of 1,002.20.

The STOXX Europe 600 Banking Index <.SX7P> fell 2.3 percent.

(Reporting by Brian Gorman)