* FTSEurofirst 300 closes 0.03 pct lower, snaps 6-day rally
* Banks among top decliners, on stress test worries
* Intel, ASML results, boost European technology stockss
By Brian Gorman
LONDON, July 14 (Reuters) - European shares dipped slightly
on Wednesday, snapping a six-day winning run, with banks sliding
on concerns over expected tough new capital and risk rules for
the sector.
Tech stocks helped limit losses, after ASML <ASML.AS> raised
its sales forecast and following U.S. giant Intel's <INTC.O>
results.
The FTSEurofirst 300 <> of top European shares fell
0.03 percent to close at 1,045.11 points.
The index had risen 8.2 percent over the previous six
sessions, with the Stoxx Europe 600 Banking Index <.SX7P> up
13.5 percent, on hopes most banks would pass the stress tests.
But analysts say enough optimism had been factored into share
prices.
"The market is going to be a bit nervous until we can see
the stress tests," said Colin McLean, managing director at fund
manager SVM in Edinburgh.
BNP Paribas <BNPP.PA>, HSBC <HSBA.L> and Societe Generale
<SOGN.PA> fell between 0.7 and 2.2 percent.
The pan-European index soared 62 percent between hitting a
a lifetime low in March, 2009 and the end of the year. But it
is in negative territory in 2010, down 0.l percent, and more
than 6 percent down from a mid-April peak, partly on worries
about debt levels in Europe and the pace of economic recovery.
"It's had a brief respite. It hasn't broken the downward
trend," said McLean."
Investors kept a close eye on a meeting of the Basel
Committee of banking supervisors and central bankers in
Switzerland, as they started to finalise tough new bank capital
and liquidity rules. []
Adding to worries in the sector, borrowing by Spanish banks
from the European Central Bank surged in June to a new record
high, indicating tight access to funding before the expiry of
442 billion euros in one-year ECB loans at the start of July.
[]
However, technology stocks gained on upbeat corporate news.
Dutch chip equipment maker ASML <ASML.AS> rose 3.1 percent
after raising its 2010 sales outlook by at least 10 percent as a
broadly improving outlook for the chip industry drove
better-than-expected second quarter results. []
Late on Tuesday, Intel, the world's top micro-chip maker,
reported second-quarter earnings that beat analysts'
expectations, allaying fears that companies may be slowing down
their spending on technology. []
Europe's technology sector <.SX8P> advanced 1.2 percent,
with STMicroelectronics <STM.PA>, Infineon <IFXGn.DE> and ARM
Holdings <ARM.L> gaining 2.3 to 3.1 percent.
SVM's McLean said worries were about regulation and
macroeconomics rather than about company news.
"The market seems inclined to take second-quarter earnings
well," he said.
BP FALLS
Among individual movers, BP <BP.L> fell 2.3 percent. The oil
major said it delayed a critical test to determine if it can
close a cap on top of its ruptured well in the Gulf of Mexico.
[]
The stock is down 39 percent from a peak in April.
Across Europe, the FTSE 100 <> and France's CAC 40
<> fell 0.3 and 0.1 percent respectively. Germany's DAX
<> rose 0.3 percent. The Thomson Reuters Peripheral
Eurozone Countries Index <.TRXFLDPIPU> rose 0.5 percent.
Wall Street was higher around the time European bourses were
closing. The Dow Jones <>, S&P 500 <.SPX> and Nasdaq
Composite <> were up between 0.1 and 0.4 percent.
However, data suggested that the pace of recovery in the
United States, the word's biggest economy, was moderate. Sales
at U.S. retailers fell 0.5 percent, down for a second month.
Investors also looked ahead to a statement from the Federal
Reserve later Wednesday about the outlook for the U.S. economy.
(Editing by Louise Heavens)
