Europe shares fall on U.S. data, bank worries

                                
 * FTSEurofirst 300 index sheds 0.3 percent 
                                
 * Banking sector worries weigh on financial firms 
                                
 * Weak U.S. consumer sentiment reading rattle confidence 
                                
 By Harpreet Bhal 
                                
 LONDON, Sept 17 (Reuters) - European shares fell on Friday,
as confidence was stung by data showing U.S. consumer sentiment
fell to its lowest level in more than a year, and with banks
lower on renewed worries over the sector's financial health.
                                
 The pan-European FTSEurofirst 300 <.FTEU3> index of top
shares closed 0.3 percent lower at 1,072.87 points, ending at
its lowest closing level in over a week.
                                
  Banks were among the decliners, following a report in the
Irish Independent newspaper on the possibility of an
International Monetary Fund (IMF) bailout for the country.
Allied Irish Banks <ALBK.I> fell 11.1 percent, Societe Generale
<SOGN.PA> lost 2.9 percent and Barclays <BARC.L> shed 3.2
percent.
                                
 The Irish Finance Ministry said there was no truth to the
rumours and the International IMF said it does not foresee its
assistance being needed for Ireland. [ID:nLDE68G0IO] 
                                
 "It seems to be new twists on familiar worries nagging
traders today as concerns there could be more pain to come for
some of the euro-region banks continued to weigh," said Ben
Critchley, Sales Trader at IG Index.
                                
 The cost of insuring Irish sovereign debt against default
hit a record high and the Irish/German spread reached a euro
lifetime peak on persisting worries about funding Ireland's
banking sector.
                                
 Adding to the negative outlook, the Thomson
Reuters/University of Michigan index of consumer sentiment
unexpectedly worsened in early September to its lowest level
since August 2009 -- heightening worries over the pace of
economic recovery. [ID:nN17137976]
                                
 "With the economic backdrop still providing the odd negative
surprise at the moment, we look set for more volatile sessions
next week," Critchley said.
                                
 
                                
 CARREFOUR STRONG
                                
 Among the gainers, Carrefour <CARR.PA> jumped 4.6 percent
after the world's No.2 retailer unveiled a revamp plan for its
European hypermarkets which it said could more than double
profit by 2015. [ID:nLDE68G0BW]
                                
 Invensys <ISYS.L> gained 3.2 percent after the engineer
signed an agreement with Chinese rolling stock maker CSR
Corporation to enable CSR's signaling company to license and
manufacture its interlocking technology for the mass transit
market. 
                                
 On the downside, mobile telecoms equipment giant Ericsson
<ERICb.ST> shed 2.5 percent, extending losses on Thursday
following talk the company is guiding for lower profits, and
after CEO comments on pricing pressure. [ID:nLDE68F0I8]
                                
 Across Europe, Britain's FTSE 100 <.FTSE>, Germany's DAX
<.GDAXI> and France's CAC 40 <.FCHI> fell 0.4 to 0.6 percent. 
                                
 The Euro STOXX 50 <.STOXX50E>, the euro zone's blue-chip
index, fell 1 percent to 2,757.37 points -- below 2,805.95, the
61.8 percent Fibonacci retracement of the index's fall from an
April high to a May low.
                                
 The index is still below Monday's high and its early August
high, with analysts suggesting it is stuck in a five-month
range.
 (Editing by Hans Peters)