European shares slip after rally, Telefonica tumbles
* FTSEurofirst 300 retreats from highs hit on Thursday
* Telefonica falls after Q1 profits miss forecasts
* Prospect of new ECB stimulus keeps some traders bullish
By Sudip Kar-Gupta
LONDON, May 9 (Reuters) - European shares retreated on Friday as a disappointing business update from leading telecoms group Telefonica sobered the mood after a rally on the previous day.
The pan-European FTSEurofirst 300 index, which on Thursday hit a 2014 peak of 1,359.07 points that marked its highest level in around six years, fell 0.3 percent to 1,354.74 points in mid session trading.
The euro zone's blue-chip Euro STOXX 50 index retreated by 0.6 percent to 3,186.75 points.
The indexes are up around 3 percent and 2.5 percent respectively since the start of 2014.
Shares in Spain's Telefonica fell 2.9 percent after the company posted a 23 percent fall in first quarter net profits that missed market expectations. Continuación...