Europe stocks fall, Ireland debt worries resurface

                                
   * FTSEurofirst 300 ends 0.1 percent lower
                                
 * Peripheral indexes hammered by reignited debt fears
                                
 * Euro STOXX 50 breaks below key support level
                                
 * Cisco's dismal outlook hurts Europe's tech shares
                                
 * For up-to-the-minute market news, click on [STXNEWS/EU]
                                
 
                                
 By Blaise Robinson
                                
 PARIS, Nov 11 (Reuters) - European stocks dipped on
Thursday, further retreating from two-year highs hit earlier in
the week, as investors dumped stocks from the region's
peripheral countries on mounting fears over Ireland's debt woes.
                                
 While the FTSEurofirst 300 <.FTEU3> index of top European
shares fell only 0.1 percent to 1,108.78 points, the Euro STOXX
50 <.STOXX50E>, the euro zone's blue-chip index, dropped 0.5
percent to 2,831.22 points, and Ireland's ISEQ index <.ISEQ>,
Spain's IBEX 35 <.IBEX>, Portugal's PSI20 <.PSI20> and Italy's
FTSE MIB <.FTMIB> dropped 0.8-1.6 percent.
                                
 The Thomson Reuters Peripheral Eurozone Countries Index
<.TRXFLDPIPU> fell 1.9 percent to a one-month low.
                                
 "It's time to book profits, that's what we're doing. The
market is ripe for a correction," said Jean-Yves Dumont, head of
asset allocation strategy and funds at Dexia Asset Management,
which turned "underweight" on equities on Wednesday.
                                
 "Overall it's deja vu, and Europe has put in place a lot of
instruments to help avoid a full-blown crisis."
                                
 The FTSEurofirst 300 dropped about 15 percent last spring as
fears the Greek debt crisis could spread to other euro zone
countries and derail the region's frail economic recovery
rattled investors.
                                
 Irish and Portuguese debt premiums over German government
bonds hit highs on Thursday, lifting other peripheral euro zone
yields, on growing scepticism that Ireland could escape a
Greek-style financial bailout. [ID:nLDE6AA1H9]
                                
 Ireland warned a surge in its borrowing costs to record
highs had become "very serious". European officials said they
were monitoring developments there but denied for a second day
running that Dublin was seeking financial aid. [ID:nLDE6AA0MK]
                                
 Two-thirds of economists and bond strategists polled by
Reuters on Thursday said Ireland will seek international rescue
funds before the end of next year. [ID:nLDE6AA1VS]
                                
 
                                
 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
                                
 European bank exposure to Irish debt: [ID:nLDE6AA119]  
                                
 Euro zone struggles with debt graphic:                 
                                
 http://r.reuters.com/hyb65p                            
                                
 Ireland's bailout challenge http://r.reuters.com/wuv48p
                                
 G20 Take a Look:                        [ID:nN09105095]
                                
 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
                                
 
                                
 European banking stocks fell, with Bank of Ireland <BKIR.I>
losing 7.8 percent, Credit Agricole <CAGR.PA> down 2.4 percent
and Royal Bank of Scotland <RBS.L> down 2.7 percent.
                                
 "In the longer term, the outlook remains positive for
equities," Dexia's Dumont said. "U.S. macro data has recently
improved, stock valuations are still attractive, earnings are
very good and investors' risk appetite has been improving."
                                
 Adding to negative sentiment on Thursday, the Euro STOXX 50
broke below a key support level, the 38.2 percent Fibonacci
retracement of the index's fall from a 2007 high to a 2009 low.
                                
 The index's next big support level is at 2,806.39 points,
the index's 50-day moving average.
                                
 Around Europe, the UK's FTSE 100 index <.FTSE> ended down
0.03 percent as losses in banking stocks were offset by gains in
mining shares, Germany's DAX index <.GDAXI> ended up 0.05
percent, helped by Siemens's <SIEGn.DE> gains, while France's
CAC 40 <.FCHI> dropped 0.5 percent, dragged by heavyweight
banking stocks.
                                
 European technology shares lost ground after Cisco Systems
Inc <CSCO.O> gave a dismal revenue outlook overnight, stunning
investors who had hoped for proof of a recovery in technology
spending.
                                
 The STOXX Europe 600 Technology Index <.SX8P> fell 1 percent
with STMicro <STM.PA> down 3.4 percent and Alcatel-Lucent
<ALUA.PA> dropping 2.8 percent.
                                
 Siemens <SIEGn.DE> gained 2.6 percent after the engineer
signalled its confidence with a proposed sharp rise in dividends
and a promise of profit growth, driven by emerging markets.
                                
 Miners rose as copper raced to a record high, boosted by
brisk economic data from top consumer China and persistent
supply concerns as inventories fell.
                                
 Antofagasta <ANTO.L> gained 4.8 percent and Anglo American
<AAL.L> rose 3.4 percent.
                                
(Reporting by Blaise Robinson; editing by David Hulmes)