* FTSEurofirst 300 falls 0.2 pct
* Philips slides as profit falls
* For up-to-the-minute market news, click on []
By Brian Gorman
LONDON, Jan 24 (Reuters) - European shares fell on Monday,
after data showed euro zone growth accelerating, but with the
peripheral countries way behind Germany, and Philips Electronics
<PHG.AS> down on below-forecast fourth-quarter profits.
At 1010 GMT, the FTSEurofirst 300 <> index of top
European shares was down 0.2 percent at 1,145.89 points, after
falling 0.7 percent last week.
The European benchmark is up more than 77 percent from its
lifetime low of March, 2009, with several major economies having
emerged from recession, helped by stimulus from governments and
central banks worldwide.
Vibrant growth in Germany helped the euro zone's services
sector expand faster in January despite growing weakness
elsewhere in the bloc, early findings from a business survey
showed on Monday. []
"It's the extent to which it's lopsided towards Germany,"
said Bernard McAlinden, investment strategist NCB Stockbrokers
in Dublin.
But most strategists said the recent rally had further to
go. "Earnings season is going fine," McAlinden said. "There is
short-term support for the market."
Philips Electronics <PHG.AS> fell 6.4 percent after it
reported lower-than-expected fourth-quarter net profit, as poor
TV sales hit its lifestyle division, and warned that consumers
in mature markets will be reluctant to spend this year.
Some miners surrendered earlier gains, with metals prices
weakening as the dollar strengthened.
Anglo American <AAL.L>, and Xstrata <XTA.L> fell 0.4 and 0.3
percent respectively.
"Bond markets are giving direction. Yields are going
upwards, and that has implications for equities," said Richard
Jeffrey chief investment officer at Cazenove Capital Management.
But he said equities would rise in the short term as "the world
economy is continuing to grow".
Further political turmoil in the euro zone, much of it
brought about by the region's financial crisis, also unsettled
some investors.
Ireland's junior coalition party withdrew from Prime
Minister Brian Cowen's government on Sunday, signalling the end
of a crisis-riddled administration. The Greens said, however,
they would support legislation underpinning the 2011 budget, as
agreed under an 85 billion euros EU/IMF bailout, to ensure a
swift election, possibly in February. Ireland's benchmark
<.ISEQ> was up 1 percent. []
Across Europe, Britain's FTSE 100 <> rose 0.1 percent,
Germany's DAX <> fell 0.3 percent, and France's CAC40
<> was flat.
CONSTRUCTION STOCKS RISE
Some construction-related stocks rose after UBS upgraded the
European construction materials sector to "overweight" from
"neutral".
CRH <CRH.I> rose 3.4 percent after UBS upgraded it to "buy"
from "neutral". Saint Gobain <SGOB.PA> rose 1.6 percent as the
broker added the company to its "key call" list.
Northern Foods <NFDS.L> gained 15.9 percent after the maker
of Fox's biscuits and Goodfella's pizza agreed to be taken over
by businessman Ranjit Boparan in a 342 million pounds deal
announced after the market closed on Friday, usurping its
planned merger with Ireland's Greencore <GNC.I>.
(Editing by Mike Nesbit)
(brian.gorman@thomsonreuters.com; +44 20 7542 9128; Reuters
Messaging: brian.gorman.thomsonreuters.com@reuters.net))
