* FTSEurofirst 300 down 0.4 pct; reverses earlier gains
* Euro STOXX 50 off 0.5 pct, fails to break resistance level
* Upbeat earnings from Capgemini, France Telecom support
By Harpreet Bhal
LONDON, July 29 (Reuters) - European shares closed lower on
Thursday, pressured by falls on Wall Street and with a late
sell-off in heavyweight banks offsetting upbeat results from
companies including Capgemini <CAPP.PA>.
The pan-European FTSEurofirst 300 <> index of top
shares closed 0.4 percent lower at 1,046.90 points, reversing
earlier gains, as downbeat outlooks from Nvidia <NVDA.O> and
Symantec <SYMC.O> stung chipmaker shares on Wall Street.
Stocks were also pressured as the Euro STOXX 50 <>
index failed to break a key resistance level. The index shed 0.5
percent to 2,752.92 points, failing to break above 2,790 for the
third straight day, a level hit several times in May and June.
Just a few points above that level, the index will face more
resistance with the 200-day simple moving average at 2,800.74
and the 61.8 percent Fibonacci retracement level of the fall
from the peak in April to the low in May, which is 2,805.95.
Top banking shares were among the top fallers, with Barclays
<BARC.L>, HSBC <HSBA.L>, Societe Generale <SOGN.PA> and BNP
Paribas <BNPP.PA> off 0.7 to 2.8 percent.
Strong earnings, however, helped cap further losses. Among
them, Capgemini rose 7.3 percent after it hiked its 2010 margin
target and second-half sales goal, citing a recovery in business
spending. []
France Telecom <FTE.PA> rose 5.5 percent after quashing
fears over its payout policy by announcing a 1.40 euro per share
dividend for 2010, 2011 and 2012. []
"Most of the numbers kicked in a lot better, but there is
still a lack of confidence in the sustainability of economic
growth and the sustainability of the earnings stream being
extended into 2011," said Heino Ruland, strategist at Ruland
Research in Frankfurt.
Analysts said worries over the economic recovery remained on
investors' minds, with some caution prevailing ahead of U.S.
second-quarter gross domestic product (GDP) data due on Friday.
Earlier in the session, shares were briefly boosted by news
that weekly jobless claims in the United States fell slightly
more than expected, offering a ray of hope for the fragile
labour market recovery. []
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC 40 <> shed 0.1 to 0.7 percent.
In the United States, the S&P 500 <.SPX> slipped 1.1
percent, the Dow Jones industrial average <> lost 0.9
percent and the Nasdaq <> was 1.5 percent lower.
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Graphic on European Q2 earnings by sector
http://r.reuters.com/naw22n
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ASTRAZENECA GAINS
AstraZeneca <AZN.L> advanced 2.7 percent after the drugmaker
doubled its 2010 share buyback programme, posted strong results
and won an endorsement from a U.S. advisory panel for its
potential blockbuster heart drug Brilinta. []
Telefonica <TEF.MC> climbed 3.2 percent after reporting
robust first-half profits as strength abroad offset a weak, but
improving, performance at home, affirming the logic of its Vivo
<VIVO4.SA> deal in fast-growing Brazil.
Among the fallers, German firm Wacker Chemie <WCHG.DE>
dropped 5.2 percent ahead of second-quarter results due on
Friday.
(Editing by Michael Shields)
