* European shares dip but hold near 7 1/2-year highs
* Dollar slips vs euro
* Oil price drops as China strategic reserves fill
By Nigel Stephenson
LONDON, March 25 (Reuters) - European shares dipped on Wednesday but held near multi-year highs and the euro rose against the dollar after a survey showed the German business climate improving.
The pan-European FTSEurofirst 300 share index fell 0.2 percent to 1601.50 points, still close to last week's 7 1/2-year high. German business morale, as measured by the Ifo index, rose for the fifth successive month to its highest since July 2014.
"The macro newsflow in Europe is quite positive, but after such a rally the market needs to catch its breath. At this point a pause is needed, while the medium-term trend remains very positive," IG France chief market analyst Alexandre Baradez said.
French luxury goods maker Hermes
Earlier, Asian shares stalled. MSCI's main gauge of
Asia-Pacific stocks outside Japan
Tokyo's Nikkei index
Chinese stocks fell, breaking an 11-day winning streak as
banks dragged major indexes lower. The CSI300 index
The dollar index
The index has fallen about 4 percent from a near 12-year
high hit in mid March since the Federal Reserve took a dovish
tone on when it might raise interest rates, prompting many
analysts to push back expectations of the first Fed hike since
2006 to September from June. The yen was steady at 119.64 to the
In fixed income markets, German 10-year government bond
Brent crude oil
China has been taking advantage of cheap oil to build up its
reserves, but a senior Chinese oil trading executive said on
Wednesday existing capacity was reaching its limits.
"Although the market should already have expected that the demand from China's (reserves) would not last forever, it is hard to predict when this time would come. So now that it has happened, the markets are just factoring this in," said Daniel Ang, investment analyst at Singapore-based brokerage Phillip Futures.
Gold slipped but kept close to a 2 1/2-week high on the
growing expectation the Fed will not raise rates until
September. Spot gold
(Additional reporting by Blaise Robinson in Paris, Shinichi Saoshiro in Tokyo and Henning Gloystein in Singapore; Editing by Andrew Heavens) ((firstname.lastname@example.org; +44 20 7542 8682; Reuters Messaging: email@example.com))
Keywords: MARKETS GLOBAL/