* FTSEurofirst 300 index closes 0.5 pct lower
* Energy producers drop
* U.S. home sales, durable goods data support recovery story
By Brian Gorman
LONDON, Aug 26 (Reuters) - European shares slipped back from
a 10-month closing high on Wednesday, as investors took profits,
even as German and U.S. economic data continued to point to
recovery.
The pan-European FTSEurofirst 300 <> index of top
shares fell 0.5 percent to close at 973.92 points, breaking a
four-day winning streak, and having hit its highest close since
early October on Tuesday.
The European benchmark index is still up 50.9 percent from
its lifetime low of March 9, as investors have become more
confident on the prospects of recovery.
"The market has come a long way, and the economics are still
supportive," said Georgina Taylor, equity strategist, Legal &
General Investment Management.
"We're just seeing a little profit taking. Nothing has been
derailed. Housing data is improving. The only area of concern is
consumer spending."
Energy companies were the biggest drag on the index, with
crude prices <CLc1> down more than 1 percent to just above $71 a
barrel, after the U.S. Energy Information Administration said
inventories had risen. []
BG Group <BG.L>, BP <BP.L>, Repsol <REP.MC> and Total
<TOTF.PA> were between 0.9 and 2.3 percent lower.
UK-based oil explorer Tullow Oil <TLW.L> fell 3.9 percent
after it said interim profits dropped 83 percent on lower oil
prices and production. []
Other economics news was mostly upbeat. Sales of newly built
U.S. single-family homes rose in July to their fastest pace in
10 months, while orders for long-lasting manufactured goods
surged, hinting a modest economic recovery was taking shape.
[]
However, some investors chose to focus on orders excluding
transportation climbing slightly less than forecast.
Back in Europe, the business climate index of Germany's Ifo,
a Munich-based think tank, rose to 90.5 from an upwardly revised
87.4 in July. []
"The Ifo figures did not have a momentum effect, despite
them being very good. But one also has to acknowledge that the
markets are moving on high levels and that people may be
following the strategy of 'selling on good news,'" said Joerg
Rahn, chief investment officer at wealth management company
Marcard, Stein & Co.
Miners also fell. Copper miner Antofagasta <ANTO.L> lost 4.8
percent after it posted lower-than-expected earnings in the
first half and warned prices were likely to remain volatile in
the second half. []
BHP Billiton <BLT.L>, Xstrata <XTA.L>, Anglo American
<AAL.L> and Rio Tinto <RIO.L> were down 1.4 to 4.1 percent.
NATIXIS SOARS
Among individual movers, French bank Natixis <CNAT.PA>
soared 38.8 percent after majority owner state-backed BPCE said
it will guarantee roughly 35 billion euros ($50.12 billion)
worth of toxic assets at the investment bank. []
Alcatel-Lucent <ALUA.PA> surged 11.9 percent as traders
cited market talk of a possible bid from a Chinese manufacturer
of telecom gear and a rating upgrade by Natixis. []
Heineken <HEIN.AS>, the world's third-largest brewer, rose
7.2 percent, after reporting a rise in first-half operating
profit, driven by cost savings, beat forecasts. []
Guinness maker Diageo <DGE.L> rose 2.6 percent, ahead of
full-year results on Thursday.
Suez Environnement <SEVI.PA> soared 11.5 percent after the
French utility group reported forecast-topping first-half profit
despite a sharp drop in waste business.[]
However, GDF Suez <GSZ.PA>, the French electricity and gas
group, fell 1.7 percent, ahead of first-half results on
Thursday. []
Swiss Life <SLHN.VX> fell 7 percent after saying it is
cutting jobs and costs after two investments in Germany failed
to yield hoped-for benefits, even as first-half profits beat
forecasts. []
Across Europe, the FTSE 100 <> index closed 0.5 percent
lower, Germany's DAX <> fell 0.6 percent and France's CAC
40 <> was down 0.3 percent.
(Additional reporting by Christoph Steitz in Frankfurt;
editing by Rupert Winchester)
