* Pan-European FTSEurofirst 300 index falls 0.8 pct
* Brazil-exposed stocks down as S&P cuts country rating
* Next advances after reporting a rise in profits
By Atul Prakash
LONDON, Sept 10 (Reuters) - European shares retreated on Thursday, tracking sharp losses on Wall Street and in Asia, with companies exposed to Brazil coming under pressure after Standard & Poor's downgraded the country's credit rating to junk grade.
Shares in Casino Guichard, Banco Santander , Seadrill Anheuser-Busch InBev, British American Tobacco and Unilever fell 1 to 4.6 percent.
The FTSEurofirst 300 index of top European shares was down 1.1 percent at 1,420.29 points by 0832 GMT after rising 1.4 percent in the previous session.
The market tracked a sharp sell-off on Wall Street and in Asia. Major U.S. share indexes fell 1.2 to 1.5 percent on Wednesday, while Japan's Nikkei dropped 2.5 percent.
"Europe is catching up with overnight developments in the U.S. and Asia, but we still believe that strong earnings growth in Europe this year, combined with a supportive monetary policy, will underpin share prices," said Robert Parkesof HSBC Global Research.
"The downside move in European equities in August represents an opportunity to get back into the market."
Lingering concerns about the pace of economic growth in China, the world's biggest metals consumer, hit mining stocks the most, with the STOXX Europe 600 Basic Resources Index falling 1.5 percent. BHP Billiton, Glencore and Anglo American fell 1 to 4.6 percent.
China's manufacturers slashed prices at the fastest rate in six years in August as commodity prices fell and demand cooled. The producer price index fell 5.9 percent in August from the same period last year, its 42nd consecutive month of decline.
"Chinese producer prices have been slowing for more than three years now so another month of declines shouldn't really come as a great surprise, but the market appears to be hyper-sensitive to Chinese economic data at the moment," Laith Khalaf, senior analyst at Hargreaves Lansdown, said.
German utility E.ON fell 5 percent after saying it would book a significant net loss in 2015.
On the positive side, Next rose nearly 2 percent after Britain's second-largest clothing retailer by sales value posted a 7.1 percent rise in first-half profit.
Europe bourses in 2015: link.reuters.com/pap87v
Asset performance in 2015: link.reuters.com/gap87v
Today's European research round-up
Editing by Robin Pomeroy