Europe stocks end up; defensives gain, banks fall

                                
 * FTSEurofirst 300 index closes up 0.2 pct
* Well off session highs in choppy trade
* Investors stick to defensives
                                
 By Joanne Frearson
                                
 LONDON, March 24 (Reuters) - European shares closed firmer
on Tuesday, but well off sessions highs in choppy trade, as
investors took profits following Monday's rally with banks and
commodity stocks the main losers.
                                
 The pan-European FTSEurofirst 300 <.FTEU3> index of top
shares was up 0.2 percent at 740.83 points, after being as high
as 750.71 points and down as low as 734.04 points.
                                
 On Monday, the FTSEurofirst 300 index surged 3 percent after
the United States revealed details of its plan to purge banks of
up to $1 trillion in bad assets.
                                
 "There is a general belief ... that the rally in Europe is
clearly overdone," said Peter Dixon, strategist at Commerzbank.
                                
 "We are certainly getting some retrenchment. It is a great
time to take profits ... whether it is a good time to get back
in the markets is a different matter ... I think the markets are
too expensive at these levels," he said.
                                
 Banks fell following earlier rises after a bullish update on
Deutsche Bank <DBKGn.De>, which rose 4.5 percent.
                                
 HSBC <HSBA.L> slumped 6.3 percent on concerns over Asian
growth after Bank of China <3988.HK> reported a 58 percent drop
in fourth-quarter earnings.
                                
 BNP Paribas <BNPP.PA>, Nordea Bank <NDA.ST> and Credit
Suisse <CSGN.VX> were down 3.7-7.4 percent.
                                
 Across Europe, the FTSE 100 <.FTSE> index was down 1.1
percent, Germany's DAX <.GDAXI> was up 0.3 percent and France's
CAC 40 <.FCHI> was 0.2 percent higher.

                                
 COMMODITIES FALL/DEFENSIVES GAIN
                                
 Energy stocks were lower as crude <CLc1> slid 1.8 percent
after a 3 percent rise in the previous session. BG Group <BG.L>,
BP <BP.L>, Royal Dutch Shell <RDSb.L> and Total <TOTF.PA> were
down 0.4-0.8 percent.
                                
 Miners were under pressure after copper lost 2.7 percent.
Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton
<BLT.L>, Eurasian Natural Resources Corporation <ENRC.L>, Rio
Tinto <RIO.L> and Xstrata <XTA.L> were 1.7-8 percent lower.
                                
 Also weighing on investor sentiment was news that euro zone
and UK macro data showed more job losses and higher inflation.
                                
 Analysts warned the economy may see a sharper contraction in
the first quarter than the 1.5 percent it shrank in the last
three months of 2008. [ID:nLO225350]
                                
 "Overall I think the picture is remaining very bleak," said
Silvio Peruzzo at RBS. "They are still pointing to an
accelerating pace of contraction in the economy. I think the GDP
numbers for the first quarter will be pretty weak."
                                
 Meanwhile, British consumer price inflation rose
unexpectedly to 3.2 percent in February, official data showed .
[ID:nONS004133]
                                
 Defensives were in favour as investors remained cautious and
moved out of cyclicals.
                                
 Food producers Nestle <NESN.VX>, Unilever <UNc.AS> and
Danone <DANO.PA> were up 1.6 percent and 3.7 percent
respectively, while drugmakers Sanofi-Aventis <SASY.PA>, Roche
<ROG.VX> and Novo Nordisk <NOVOb.CO> gained 0.3-3.2 percent.
                                
 (Editing by David Cowell)