European shares slip as recovery concerns persist

                                
 * FTSEurofirst 300 <.FTEU3> down 1 percent
                                
 * Worries over pace of recovery hits banks, miners
                                
 * CRH slumps on revenue concerns; cement-makers pressured
                                
 * For up-to-the-minute market news, click on [STXNEWS/EU]
                                
 
                                
 By Harpreet Bhal
                                
 LONDON, July 7 (Reuters) - European shares fell on Wednesday
morning, with latest U.S. economic data underscoring investors
concerns of a sluggish recovery in the global economy.
                                
 By 0817 GMT, the pan-European FTSEurofirst 300 <.FTEU3>
index of top shares was down 1 percent at 981.67 points, after
climbing to a one-week closing high on Tuesday.
                                
 The Euro STOXX 50 <.STOXX50E>, the euro zone's blue-chip
index, shed 1.1 percent to 2,551.57 points, moving back below
2,556 -- the 38.2 percent Fibonacci retracement of its rise to a
January peak from a March 2009 low and a level it broke above on
Tuesday.
                                
 Concerns over the pace of recovery in the United States
intensified after the Institute for Supply Management's reading
on service sector activity showed economic growth in June, but
at its slowest pace since February. [ID:nN06102990] 
                                
 The downbeat data followed a raft of weak data in recent
days on U.S. consumer spending, factory activity, employment and
the housing market, which have prompted concerns over global
demand and heightened worries that a double-dip recession could
be on the horizon. 
                                
 "The continuous stream of disappointing economic data
recently has been feeding the markets worries about the adequacy
of underlying demand in the world when the fiscal stimulus gets
withdrawn," said Bernard McAlinden, investment strategist at NCB
Stockbrokers in Dublin. 
                                
 "Even if you take the view, as we do, that there won't be a
double-dip recession, that does not mean that growth won't fade
more than people are comfortable with and that does not mean
that to avoid a double-dip you won't need more policy stimulus."
                                
 Heavyweight banking stocks were under pressure, with
Barclays <BARC.L>, BNP Paribas <BNPP.PA> and Banco Santander
<SAN.MC> off 1 percent to 1.2 percent.
                                
 Economy-sensitive mining stocks were also lower, with
Eurasian Natural Resources <ENRC.L>, Kazakhmys <KAZ.L> and BHP
Billiton <BLT.L> down 1.3-2.2 percent as metals prices
retreated.
                                
 Across Europe, Britain's FTSE 100 <.FTSE>, Germany's DAX
<.GDAXI> and France's CAC 40 <.FCHI> fell 0.8-1.1 percent.
                                
 The Thomson Reuters Peripheral Eurozone Countries Index
<.TRXFLDPIPU> shed 1.2 percent.
                                
 
                                
 ECONOMIC CONCERNS HURT CRH
                                
 Irish building materials group CRH <CRH.I> slumped 8.9
percent after saying full-year sales would be hit harder than
anticipated due to concerns over fiscal deficits in euro zone
countries and a softening in the pace of U.S. recovery
[ID:nLDE6651JT]
                                
 The cautious outlook pressured other European cement makers,
with HeidelbergCement <HEIG.DE>, Holchim <HOLN.VX> and Lafarge
<LAFP.PA> down 2.1-3.7 percent.
                                
 In the retail sector, Marks & Spencer fell 2.3 percent as
the British retailer said its rate of sales improvement slowed,
and it joined rivals in sounding cautious about the consumer
outlook. [ID:nLDE6650VH] 
                                
 Bucking the trend, peer Sainsbury <SBRY.L> rose 2.4 percent.
The Daily Mail reported revived talk that Qatar could increase
its shareholding in the British retailer to 29.9 percent prior
to launching a renewed 9.3 billion pounds, or 500 pence a share,
cash offer.
                                
 Among other gainers, BP <BP.L> rose 1.8 percent as investors
drew comfort from comment that the drilling of a relief well to
halt the oil spill in the Gulf of Mexico was a week ahead of
schedule. [ID:nLDE6650FT]
 (Reporting by Harpreet Bhal; Editing by Dan Lalor)