chip losers, Centrica fell 3.5 percent after posting a record annual profit but warning of tough year ahead. On the upside, Thomson led gainers with a 5.9 percent rise after its core earnings beat expectations and the company predicted a return to net profit this year. Interest-rates jitters weighed on the European market after a surprise jump in German business sentiment fuelled worries of further European Central Bank rate hikes, prompting investors to cash in gains. "The Ifo index lifted markets briefly before investors realised that the European Central Bank might now raise interest rates not just in March but also later," said Guenter Senftleben, a strategist at Bankgesellschaft Berlin. The ECB is expected to raise interest rates next Thursday due to recent sound economic growth data and inflation risks, according to a Reuters poll. Retailers rallied, with German retail giant Metro up 4 percent, France's Carrefour climbing 3 percent and Dutch retailer Ahold trading 1.9 percent higher. --SP 21 07 Local Time 18 07 GMT
