* FTSEurofirst 300 down 0.3 pct; 5th day of losses
* Oil majors lose ground in spite of steady crude prices
* Telecoms, pharmas, utilities up in sector rotation
* For up-to-the-minute market news, click on []
By Blaise Robinson
PARIS, June 18 (Reuters) - European stocks were down 0.5
percent in early trade on Thursday, falling for the fifth
session in a row led by energy stocks, in spite of steady oil
prices, but the drop was limited by rising defensive shares.
At 0914 GMT, the FTSEurofirst 300 <> index of top
European shares was down 0.3 percent at 842.94 points.
Oil majors were among the biggest losers, with Total
<TOTF.PA> down 0.9 percent, BP <BP.L> off 1 percent and Royal
Dutch Shell <RDSa.AS> down 1.3 percent.
Most banking stocks moved lower, with HSBC <HSBA.L> down 1.1
percent, Barclays <BARC.L> down 0.8 percent and Credit Suisse
<CSGN.VX> down 0.8 percent.
The Swiss National Bank kept up its drastic measures to
fight recession and fend off deflation, and called for rules to
split off parts of its dominant banks or limit their size, if
needed, to protect the economy. []
Miners and steel makers were also on the downside,
surrendering early gains. Antofagasta <ANTO.L> was down 0.7
percent, Lonmin <LMI.L> down 1.7 percent and ArcelorMittal
<ISPA.AS> down 2.1 percent.
Xstrata <XTA.L> bucked the trend, up 0.6 percent, boosted by
rating upgrades from Citi and Morgan Stanley.
"The trend is now downward," said Alexandre Le Drogoff,
technical analyst at Aurel BGC, in Paris.
"The correction started a few sessions ago will continue for
a while," he said, pointing out that major stock indexes
including the FTSEurofirst 300 and the DJ Stoxx 600 <>
crossed their 200-day moving averages on the downside on
Wednesday, signalling a trend reversal after the strong spring
rally.
Fuelling recent doubts over a speedy economic recovery, data
on Thursday showed British retail sales fell unexpectedly in
May, driven by falls in clothing and footwear.
"Retail sales numbers for May came in lower than analysts
had expected, throwing doubt on any near-term economic recovery.
Those 'green shoots' aren't looking so green now," said Manoj
Ladwa, senior trader at ETX Capital, in London.
Around Europe on Thursday, UK's FTSE 100 index <> was
down 0.4 percent, Germany's DAX index <> was down 0.3
percent, and France's CAC 40 <> was down 0.3 percent.
Shares in Q-Cells <QCEG.DE> fell 4.2 percent after the solar
company said Chief Financial Officer Hartmut Schuening would
leave the company after the annual general meeting in June,
earlier than planned.
On the upside, stocks seen as defensive gained ground, with
telecom group Vodafone <VOD.L> up 1.8 percent, pharma firm
Sanofi-Aventis <SASY.PA> up 1 percent and utility group E.ON
<EONG.DE> up 1.6 percent.
HeidelbergCement <HEIG.DE> jumped 16 percent after the
debt-laden German cement maker secured a 8.7 billion euro loan
restructuring plan from its banks, giving it until the end of
2011 to sell assets and cut costs to overhaul its strained
finances.
Chipmaker Infineon <IFXGn.DE> rose 2.3 percent after Credit
Suisse raised its target price on the stock to 2.7 euros from
1.7 euros.
Club Mediterranee SA <CMIP.PA> surged 6 percent after
entrepreneur Bernard Tapie told French newspaper Le Monde in an
interview that he had bought just over 1 percent of the
company's capital, fuelling speculation about his intentions.
Later in the session, investors will keep an eye on the
macro front, with U.S. leading indicators due at 1400 GMT, as
well as U.S. weekly jobless claims, due at 1230 GMT.
The FTSEurofirst 300 <> index of top European shares
has gained 31 percent since reaching a record low in early March
as better-than-feared macro data and corporate results calmed
fears of a prolonged recession, but the rally has lost steam
over the past month.
(Editing by Simon Jessop)
