* FTSEurofirst 300 down 0.2 pct, key support level looms
* Japan woes weigh on technology shares
* Volatility index shows rise in risk appetite
* For up-to-the-minute market news, click on []
By Blaise Robinson
PARIS, April 14 (Reuters) - European stocks dipped early on
Thursday, as worries over Chinese inflation and doubts about the
earnings season kept investors on edge, but losses were limited
as a main index managed to stay above a key support level.
Tech shares featured among the top losers, with Ericsson
<ERICb.ST> down 2.7 percent, on lingering concerns over the
impact from Japan's crisis on the sector's supply chain.
Sony Corp <6758.T> said it is mulling a two-week summer
shutdown of some company premises to save energy as Tokyo and
Japan's northern regions face the peak period with significantly
reduced power generation capacity following last month's
devastating quake. []
At 0833 GMT, the FTSEurofirst 300 <> index of top
European shares was down 0.2 percent at 1,132.88 points. It fell
to as low as 1,129.90, just above a key support level at
1,129.09 points, which represents the 50 percent retracement of
the index's drop from a February peak to a March low.
Despite Thursday's retreat, investors' risk appetite was on
the rise, with the Euro STOXX 50 volatility index <.V2TX>
falling 2.5 percent.
Hong Kong's Phoenix TV, citing an unnamed source, said
China's annual rate of inflation in March was likely to be
5.3-5.4 percent, a 32-month high. []
"Inflation in emerging economies has become a serious issue,
as the impact from high commodity prices is stronger for those
countries," said Arnaud Scarpaci, fund manager at Paris-based
Agilis Gestion, which has 80 million euros under management.
Resource-related shares fell, with Rio Tinto <RIO.L> down
1.2 percent and BHP Billiton <BLT.L> down 1.5 percent as metal
prices retreated.
Losses in the sector, however, were limited by news of
Glencore's plans to raise up to $12.1 billion in an initial
offering.
"The fact they are going ahead during this slight softness
means they are very confident that prices will remain quite
robust," IG Markets analyst Cameron Peacock said.
Around Europe, UK's FTSE 100 index <> was down 0.3
percent, Germany's DAX index <> down 0.07 percent, and
France's CAC 40 <> down 0.3 percent.
Shares in Roche <ROG.VX> fell 0.9 percent after the
pharmaceutical group posted quarterly sales that missed
forecast, while Danone <DANO.PA> rose 2.5 percent after
reporting forecast-beating sales.
"Overall, I think that quarterly results will be good. But
the real focus should be on earnings from big U.S. industrial
firms, which will shed light on the outlook for the U.S. economy
and the Fed's next moves," Agilis Gestion's Scarpaci said.
"In terms of valuation, the European stock market is the
most attractive, and its potential is underestimated at the
moment. Just look at Credit Agricole, trading at a price-to-book
ratio of 0.6, that's extremely low."
(Reporting by Blaise Robinson; additional reporting by Miranda
Maxwell in London; Editing by Mike Nesbit)
