By Carla Mozee, MarketWatch

LONDON (MarketWatch) -- European stocks slipped Tuesday, stepping slightly away from more-than-seven-year highs reached after better-than-expected German and Spanish data.

The Stoxx Europe 600 was down less than 1 point at 391.23, as energy, financial, utility and telecom stocks eased. The index has been floating close to its best level since 2007, and getting closer to its record close of 450.50, reached in March 2000, according to FactSet data.

Among the biggest decliners of the session was Barclays PLC , with shares down 2.7% and facing their sharpest fall in nearly two months as fines and legal costs pushed the banking heavyweight to a yearly net loss of 174 million pounds (http://www.marketwatch.com/story/barclays-posts-net-loss-on-fines-legal-costs-2015-03-03)($267.4 million). The drop put pressure on the U.K.'s FTSE 100 , which turned 0.1% lower to 6,933.50. (http://www.marketwatch.com/story/ftse-100-pushes-to-record-high-but-glencore-barclays-fall-2015-03-03)

Germany's DAX 30 pared intraday gains to 2 points at 11,412.19, but the small rise could still allow the index to post its 21st record close of the year. Retail sales in Europe's largest economy rose 2.9% in January over December, a reading that beat expectations of a 0.3% decline. Sales climbed 5.3% on a 12-month basis, the fastest growth rate since June 2010.

"Cheap oil, healthy income gains, low interest rates and fading risks combined for a very strong start to the year for German retailers," Berenberg senior economist Christian Schulz wrote following the data. "Private consumption looks set to be a major growth driver in 2015 and, at this rate, would put a severe upside risk to our forecast of GDP growth of merely 0.3% [quarter-over-quarter] in Q1."

Read: 'Legendary' German retail data signal Europe is turning a corner. (http://www.marketwatch.com/story/legendary-german-retail-data-signal-europe-is-turning-a-corner-2015-03-03)

Spain's employment ministry, meanwhile, said the country's jobless claims unexpectedly and sharply fell by a seasonally adjusted 13,538 in February. Spain's IBEX 35 had risen after the report, putting it on track for best close since April 2010, but in afternoon trade gave up those gains to trade down 0.5% to 11,122.10.

France's CAC 40 edged down less than 2 points to 4,915.87 after rising earlier in the session.

Meanwhile, Greece's Athex Composite rose 1% to 867.85, and Russia's Micex index gained 2% to 1,818.82.

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