* FTSEurofirst 300 down 0.2 percent in early trade
* Financials, miners slip on economic recovery concerns
* Novartis gains 1.2 percent; raises full-year sales goal
* For up-to-the-minute market news, click on []
By Atul Prakash
LONDON, July 15 (Reuters) - European shares retreated on
Thursday, led lower by banks, as investors became cautious after
minutes of the U.S. Federal Reserve's June meeting showed
officials were concerned with the pace of economic recovery.
The Fed officials felt they should be ready to consider
additional steps to boost the U.S. economy if an already
softening outlook took a noticeable turn for the worse.
[]
At 0757 GMT, the FTSEurofirst 300 <> index of top
European shares was down 0.2 percent at 1,042.77 points. The
index closed almost flat on Wednesday after six straight
sessions of gains.
"On the one hand, we have very strong company results. On
the other hand, we have lingering doubts about the pace of the
economic recovery," said Luc Van Hecka, chief economist at KBC
Securities.
"If we look at the development on the labour market, there
is clearly still a lot of weakness. If you take into account
what the underlying growth pace is in the U.S. economy, if you
take inventory effects and if you take economic stimulus
packages, then it turns out that the economy is growing at a
pace which is close to zero."
Financial stocks were among the top losers, with the STOXX
Europe banking index <.SX7P> down 1.1 percent. Barclays
<BARC.L>, BNP Paribas <BNPP.PA> and Societe Generale <SOGN.PA>
fell 1.7 to 2.3 percent.
U.S. banking group JPMorgan <JPM.N> is among the companies
reporting results later on Thursday as the second-quarter
earnings season gathers pace. Investors will also scrutinise
U.S. weekly jobless claims data for further indications of the
strength of the recovery in the world's biggest economy.
Across Europe, the FTSE 100 <>, Germany's DAX <>
and France's CAC 40 <> fell 0.3 to 0.4 percent. The Thomson
Reuters Peripheral Eurozone Countries Index <.TRXFLDPIPU> was
almost flat.
MINERS UNDER PRESSURE
Concerns about global economic growth hurt the mining
sector, with BHP Billiton <BLT.L>, Anglo American <AAL.L>,
Antofagasta <ANTO.L>, Rio Tinto <RIO.L> and ENRC <ENRC.L>
falling 1.4 to 2 percent.
The market ignored a rise in copper prices, which gained on
record Chinese refined copper output in June and reassuring
economic growth and inflation data.
While China's economic growth slowed in the second quarter
in response to the fading of government fiscal and monetary
stimulus, it was close to forecasts, while lower-than-expected
inflation eased pressure on policymakers to further clamp down
on growth. []
Among individual movers, BP <BP.L> fell 0.2 percent. It was
running a crucial test on Thursday on its ruptured Gulf of
Mexico oil well that could staunch the flow of crude that has
polluted the ocean and shoreline since April. []
"While we anticipate well control costs will reduce into
September, this is only the end of the beginning. Focus will
shift to paying damages and trying to assess potential
penalties," Citigroup said in a note.
"The quantum of penalties and punitive damages that BP is
forced to pay is key since they are not tax deductible. We would
argue that the market still continues to discount the higher end
of potential fines."
Novartis AG <NOVN.VX> rose 1.2 percent after Swiss drugmaker
raised its full-year sales goal on the back of strong demand for
its newest products and stood by its offer to buy out minority
shareholders in eyecare group Alcon <ACL.N>.
(Editing by Mike Nesbit)
