Europe shares trim gains as data cools ECB speculation
* FTSEurofirst 300, Euro STOXX 50 up 0.1 pct
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* Airlines down after volcano eruption in Iceland
By Francesco Canepa
LONDON, Aug 29 (Reuters) - European shares trimmed their early gains on Friday as euro zone inflation data slightly cooled market speculation about fresh monetary stimulus by the European Central bank.
Euro zone inflation dropped as expected to a fresh five year low in August, data showed on Friday, but it was not likely to force the ECB into immediate policy intervention next week.
Dovish comments by ECB's President Mario Draghi last week had fuelled market bets that the central bank was preparing to introduce new stimulus, such as purchases of government or corporate bonds, a measure known as quantitative easing (QE).
"I think what people realise is that for the ECB to engage in public-sector QE...the ECB has to see the whites of the eyes of deflation," Wouter Sturkenboom, investment strategist at Russell Investments, said. Continuación...