* FTSEurofirst 300 falls 0.7 pct; lowest close in 2 weeks
* Energy shares among top decliners; BP hits 14-year low
* U.S. GDP data hurt sentiment, but banks edge higher
By Atul Prakash
LONDON, June 25 (Reuters) - European shares hit a two-week
closing low on Friday, as data showed first-quarter U.S.
economic growth was slower than reported, while BP's battle to
clean the Gulf of Mexico oil spill weighed on its sector.
BP <BP.L> was down 6.4 percent after hitting a 14-year low
as a hurricane looked set to hamper its efforts to contain the
worst oil spill in U.S. history. The disaster has wiped more
than half off BP's market value since April. Total <TOTF.PA>, BG
Group <BG.L> and Tullow <TLW.L> were down 1.2 to 1.8 percent.
The FTSEurofirst 300 <> index of top European shares
fell for a fourth straight day and ended down 0.7 percent at
1,013.58 points, the lowest close since early June. It is down 9
percent from a peak in April, when worries intensified that the
euro zone debt crisis could erode economic growth in the region.
Sentiment soured after figures for U.S. economic growth in
the first quarter were revised down. []
"It's just an indication of the fact that economic recovery
is fragile. Valuations on the equity market are not cheap,
particularly among cyclicals. I would expect the correction to
continue," said Felicity Smith, fund manager at Bedlam Asset
Management.
"The market weakness is perfectly understandable, but within
that there are opportunities amongst those companies in Europe
which benefit from non-cyclical demand such as healthcare."
European banking shares <.SX7P>, which fell in the previous
three sessions, rose 0.3 percent as U.S. lawmakers hammered out
new Wall Street rules, ending a long period of uncertainty.
[]
The measures must still win approval from both chambers of
Congress before U.S. President Barack Obama can sign them into
law. Among the reforms, banks would face stricter limits on
risky trading and investing, but could make small investments in
private equity and hedge funds.
Global regulators will also dilute a reform that forces
banks to hold more reserves to survive shocks without having to
rely again on taxpayer help, sources familiar with the
negotiations said. The Group of 20 leading countries meet in
Toronto on Saturday and Sunday. []
Standard Chartered <STAN.L>, Societe Generale <SOGN.PA> and
Credit Agricole <CAGR.PA> gained 1.8 to 2.6 percent.
TECHNICALS WEAK
The Thomson Reuters Peripheral Eurozone Countries Index
<.TRXFLDPIPU> fell 0.4 percent, while Germany's DAX <>,
France's CAC 40 <> and Britain's FTSE 100 <> fell
between 0.7 and 1.1 percent.
"The FTSE 100 is in the process of posting a 'death cross',
which is where the 50-day crosses below the 200-day moving
average. Furthermore earlier this week, the 200-day average
successfully rebuffed an attempt by the FTSE 100 to break above
it," said Michael Hewson, analyst at CMC Markets.
"There is trend line support through 5,100 from the recent
lows around 4,800, and a break of this level could well increase
the bearish pressure building up on the downside."
The index closed at 5,046.47 points on Friday. It's 50-day
moving average was at 5,314, while the 200-day average was
indicated at 5,328.
On the macro-economic front, a survey showed U.S. consumer
sentiment rose in June to its highest since January 2008.
[]
Among individual companies, Bourbon <GPBN.PA>, a supplier of
vessels for the offshore oil industry, rose 0.6 percent. It is
set to invest $2 billion to expand its fleet, betting on an
increase in offshore activity despite BP's oil spill disaster.
[]
(Editing by Will Waterman)
