* FTSEurofirst 300 ends 0.3 pct lower
* Posts first monthly gain since March
* Alcatel Lucent soars on upbeat statement
By Brian Gorman
LONDON, July 30 (Reuters) - European stocks recovered from a
sharp fall to close only slightly lower on Friday, and to notch
up the first monthly gain since March, with U.S. data giving
mixed signals on economic growth.
The FTSEurofirst 300 <> index of top European shares
fell 0.3 percent to close at 1,043.66 points, having been as low
as 1,034.35 earlier. The index rose 5 percent in July, the first
gain in four months.
U.S. economic growth slowed in the second quarter as
companies invested heavily in equipment from abroad and
consumers spent less, raising concerns about the recovery in the
rest of 2010. Gross domestic product expanded at a 2.4 percent
annual rate, the Commerce Department said in its first estimate
on Friday, compared with forecasts of a 2.5 percent growth rate.
Shares initially fell sharply in reaction, but then
recovered, with some analysts remaining upbeat.
"The market had second thoughts on the data we had," said
Mike Lenhoff, chief strategist and head of research at Brewin
Dolphin Securities in London. "All the news is not in the
headline. The investment spending was strong."
He also pointed to corporate news helping sentiment. "There
is no reason for the markets to be downbeat. Earnings are
strong, and companies are guiding full-year estimates up."
Other data was also mixed. A report showed business activity
in the nation's Midwest region expanded more than expected this
month on strong orders.
However, consumer sentiment dropped this month to a
nine-month low, according to Thomson Reuters/University of
Michigan's Surveys of Consumers. []
Energy companies were mostly lower on Friday, with crude
prices slipping after the GDP data.
Royal Dutch Shell <RDSa.L> and Repsol <REP.MC> fell 1.6 and
1 percent respectively. Norway's StatoilHydro <STL.OL> fell 2.5
percent, extending a decline from Thursday, when it reported
profit below forecasts.
BP <BP.L> fell 1.8 percent on further worries about the
consequences of an oil spill in the Gulf of Mexico.
But France's Total <TOTF.PA> rose 0.9 percent after it said
second-quarter underlying net profit soared thanks to higher oil
prices, strong production and a recovery in refining.
Across Europe, Britain's FTSE 100 <> ended the day 1.1
percent lower, Germany's DAX <> rose 0.2 percent and
France's CAC40 <>fell 0.2 percent.
The Euro STOXX 50 <>, the euro zone's blue-chip
index, fell 0.4 percent to 2,742.14 points, but ended above the
50 percent Fibonacci retracement of the fall from an April high
to a May low.
Wall Street was little changed around the time European
bourses were closing.
LAFARGE FALLS
Construction and materials shares were among the biggest
losers, led by Lafarge <LAFP.PA>, down 3.9 percent after the
world's largest cement maker cut its 2010 outlook estimate for
global demand in its markets.
Rival HeidelbergCement <HEIG.DE> fell 3.4 percent, with its
results beating forecasts but its outlook statement failing to
inspire.
Banks, which had gained strongly earlier this week,
retreated on Friday, with BNP Paribas <BNPP.PA>, Banco Santander
<SAN.MC> and HSBC <HSBA.L> falling between 1.3 and 2.8 percent.
On the upside, telecoms gear maker Alcatel Lucent <ALUA.PA>
surged 11.1 percent, after saying it will reach its annual
profit targets as it posted second-quarter results that
reassured investors.
Airbus parent EADS <EAD.PA> gained 3.4 percent after
boosting its revenue outlook and setting out plans to increase
jetliner production.
(Editing by Jon Loades-Carter)
