European shares fall, Tesco slumps after overstating profit

A woman walks past a Tesco supermarket store in London, Britain, Aug 29, 2014. The supermarket chain has announced that it has cut its full year profit forecast to £2.4bil from £2.8bil - EPA Photo.

LONDON: European equities retreated from highs on Monday, on concerns the pace of Chinese economic growth may hurt miners while Tesco dragged retailers lower after further lowering its first-half profit forecast.

Tesco fell 10.7%, the top decliner in the pan-European FTSEurofirst 300 index, after cutting its forecast by £250mil (US$408.50mil), its third warning this year, after finding a fault in its accounts.