European shares closed lower yesterday, with UBS leading banks down after making a first-quarter loss, and oils and miners falling. The FTSEurofirst 300 index of top European shares fell 0.4 per cent to a provisional close of 786.6 points.

The index has lost 5.5 per cent this year after plunging 45 per cent in 2008, but is up 21.9 per cent from the record low on March 9.

Wall Street was mixed as European bourses were closing. US investors absorbed data that mostly gave downbeat signals about the depth of the recession in the world's biggest economy.

"The market is catching its breath. There is a cooling of sentiment, as some of the data shows there is a protracted slowdown, dashing hopes of a quick recovery," said Gerhard Schwarz, head of global equity strategy at UniCredit, in Munich.

UBS, which rose 10 per cent on Tuesday, fell 6.7 per cent after Switzerland's largest bank made a first-quarter loss of nearly two billion Swiss francs ($1.7 billion) and said it will cut another 11 per cent of staff.BNP Paribas, Banco Santander, Crédit Agricole, Deutsche Bank , HSBC and Standard Chartered Bank fell between 2.2 and 4.5 per cent.

Miners lost ground after Rio Tinto said its first-quarter aluminium output fell six per cent, mostly due to curtailments in Europe. Rio fell more than five per cent.

Other miners also dropped, even as most metals prices gained. BHP Billiton, Anglo American, Antofagasta and Xstrata fell 3.5 per cent to 7.1 per cent.