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* STOXX 600 down 0.2 percent
* Next drags down peers after profit warning
* Services PMI strong, inflation data up next
* Credit Suisse leads banks higher
By Alistair Smout
LONDON, Jan 4 (Reuters) - European shares edged down from aone-year high on Wednesday, with retailers in focus afterstandout faller Next cut its profit guidance andcautioned on future trade.
The STOXX 600 was down 0.2 percent, pulling backfrom a one-year high hit in the previous session and on courseto snap a three-session winning run.
UK fashion retailer Next fell as much as 14 percent and waslast down 8.2 percent, making it the biggest percentage falleron the STOXX 600. The stock has lost nearly 40 percent over thepast year.
"The expected sales recovery ahead of Christmas failed tohappen, and this rolls through to cautious company sales and(profit) guidance for 2018," Andrew Hughes, retail analyst atUBS, said in a note.
The move dragged down other high street retailers with UKexposure. Marks & Spencer dropped 4.6 percent andPrimark owner Associated British Foods fell 3.2 percent.
The STOXX 600 retail index was down 1 percent, thebiggest sectoral faller.
The exception was B&M. The value retailer was thetop STOXX 600 riser, up 7 percent, after reporting recordChristmas trading.
The STOXX 600 is up nearly 12 percent in the seven weekssince lows hit following the U.S. presidential election, asinvestors bet that global growth and inflation will rise underPresident-elect Donald Trump.
Euro zone services PMIs provided further evidence ofeconomic strength, as businesses ended 2016 by ramping upactivity at the fastest pace for five-and-a-half years.
Euro zone inflation figures due at 1000 GMT are expected toprovide further evidence of rising price pressures.
"Euro zone inflation is taking off due to powerful baseeffects in energy prices," said David Kohl, strategist at JuliusBaer.
In financials, Credit Suisse shares were up 2.5percent and in sight of their highest levels in a year followingan upgrade by Barclays.
Banks rose 0.4 percent, the top sectoral riser.
UK-listed housebuilders were also among top sectoralgainers, after Deutsche Bank said there was close to 30 percentupside in the sector.
French pharma firm Ipsen hit a record high afterNatixis upgraded the stock to "buy" from "hold".