* FTSEurofirst 300 index falls 0.6 percent
* Reckitt Benckiser drops after CEO retires
* Banks fall on euro zone peripheral debt worries
By Joanne Frearson
LONDON, April 14 (Reuters) - European shares fell on
Thursday on worries about higher global inflation as well as a
weakening U.S. jobs market, while concerns about Greek debt hit
banking stocks.
Investors were also positioned cautiously ahead of Google
<GOOG.O> results, which are scheduled to be released after the
markets close, with traders suggesting this could impact
technology and media stocks.
The pan-European FTSEurofirst 300 <> index of top
shares closed down 0.6 percent at 1,128.84 points after paring
bigger losses. Volume was 106.3 percent of its 90-day average.
Investor sentiment was knocked after U.S. claims for
unemployment benefits bounced back above the key 400,000 level,
while March U.S. core producer prices data rose slightly faster
than expected.
"There is a little bit of a setback in the market, with the
U.S. jobless claims and U.S. PPI figures data. The key from here
is to stick with companies that have pricing power," Veronika
Pechlaner, a manager on the 100 million euro ($144 million)
Ashburton European equity fund said.
Banks featured among the worst performers on market concerns
that Greece would be forced to restructure its public debt, with
the cost of insuring against a Greek sovereign default also
rising to a record high.
The STOXX Europe 600 Banks index <.SX7P> fell 1.5 percent,
while Greek bank shares <.FTATBNK> dropped 5 percent.
Banca Popolare di Milano <PMII.MI> lost 2.7 percent on media
reports that the Bank of Italy has asked it to raise fresh
capital above what was previously expected.
"Peripheries still have to contend with lower unemployment
and a sluggish consumer. We do not really see upgrades coming
through for the peripheries," Pechlaner said.
Stock markets in the peripheries fell, with Spain's IBEX 35
<> down 1.5 percent, Portugal's PSI 20 <> losing 1.6
percent and Italy's benchmark <.FTMIB> 1.2 percent lower.
Earlier, the market traded lower after Hong Kong media
reported that China would post March inflation figures above
analysts expectations on Friday, raising fears of further
monetary tightening. []
"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.
TECH STOCKS PRESSURED
Elsewhere, technology stocks were under pressure on
continued worries about Japan's March 11 earthquake and tsuanami
on supply chains after Sony Corp <6758.T> said it is mulling a
two-week summer shutdown to save energy. []
Ericsson <ERICb.ST>, which has shut down factories, fell 3.2
percent, while ASML <ASML.AS> continued its falls from the
previous session, down 2.9 percent, when the Dutch chip
equipment maker said it saw an impact from Japan on customers.
British consumer goods group Reckitt Benckiser <RB.L>
dropped 7.5 percent after its chief executive officer Bart Becht
said he is to retire. []
Across Europe, the FTSE 100 <> index was down 0.8
percent, Germany's DAX <> lost 0.4 percent and France's
CAC 40 <> fell 0.9 percent.
(additional reporting by Blaise Robinson; Editing by David
Cowell)
