European shares fell early Wednesday, tracking Wall Street lower, after the Federal Reserve warned that turmoil in Europe presents a big risk to the U.S. economy, but failed to take any new steps to stimulate growth.

At 8:05 a.m., the FTSEurofirst 300 <.FTEU3> index of top European shares was down 0.7 percent at 965.66 points.

The heavyweight banking sector, strongly exposed to the euro zone crisis, was among the fallers. The STOXX Europe 600 Banking Index <.SX7P> fell 0.9 percent.

There was a bit of expectation in the market yesterday about the Fed (announcing stimulus), said Jeremy Batstone-Carr, strategist at Charles Stanley.

He added that the economic uncertainty means it remains incumbent on investors to have a portfolio of high quality stocks - concentrate on dividend yields and ability to generate cash.

(Reporting by Brian Gorman)