European shares .STOXX fell 0.6%, retreating further from almost three-week highs hit a day earlier, and London's FTSE slid 1% even as data showed British inflation fell unexpectedly in August. In Asia, Japan's Nikkei .N225 tumbled 2.6% and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 2.2%. Shah said she expected further weakness in share markets and had an underweight position in equities.