* FTSEurofirst 300 down 0.3 percent in choppy session
* Stocks trim losses as ECB, BoE keep rates unchanged
* Weakening banks weigh; BNP Paribas up after strong results
* For up-to-the-minute market news, click on []
By Blaise Robinson
PARIS, Nov 5 (Reuters) - European stocks were down 0.3
percent by early afternoon on Thursday, with banks and miners
among the biggest losers.
Yet shares trimmed their losses after both the Bank of
England and the European Central Bank kept rates unchanged.
The BoE kept rates on hold and said it would expand its
quantitative easing programme by 25 billion pounds ($41
billion), while the ECB kept interest rates at 1 percent as
expected.
The two central banks' decisions came a day after the U.S.
Federal Reserve said it would keep interest rates near zero for
an extended period.
Later in the session, investors will closely watch comments
from ECB President Jean-Claude Trichet, looking for insight on
the outlook for rates in Europe.
At 1252 GMT, the FTSEurofirst 300 <> index of top
European shares was down 0.3 percent at 979.73 points, after
falling to as low as 969.74 points earlier in the session. The
index rose 1.6 percent the previous day.
"When you see the Bank of England continuing to ease, it
confirms the view the central banks are more exercised by
deflation risks than inflation and they are a long way from
hiking rates," said Bernard McAlinden, strategist at NCB
Stockbrokers in London.
Banking stocks were among the biggest drags on the market,
with HSBC <HSBA.L> down 1.1 percent, Banco Santander <SAN.MC>
down 0.5 percent and UniCredit <CRDI.MI> down 1.6 percent.
BNP Paribas <BNPP.PA> bucked the weak trend, up 2.6 percent
after the euro zone's second-biggest bank by market value
reported forecast-beating profit that trumped the results of
many rival banks.
Europe's benchmark index, which has surged 52 percent since
tumbling to a record low in March, has lost about 5 percent
after reaching a one-year high in mid-October.
The two-week pull-back represents a buying opportunity, said
Francois Chevallier, strategist at Banque Leonardo in Paris.
"Risk-aversion indicators such as the iTraxx have not been
rising, while the U.S. ISM manufacturing index is improving, and
analyst forecasts for corporate profits have been rising for a
month. This signals that we are in a recovery."
European credit spreads, reflected in indexes such as the
investment-grade Markit iTraxx Europe index <ITEEU5Y=GF> as well
as the Markit iTraxx Crossover index <ITEXO5Y=GF>, have been
relatively flat over the past three months, after tightening
sharply in the spring.
Miners also retreated, falling along with metal prices.
Xstrata <XTA.L> was down 1.4 percent and BHP Billiton <BLT.L>
was down 1.8 percent.
JOBS, JOBS, JOBS
Investors were also cautious ahead of key U.S. monthly jobs
figures due on Friday.
"It's really wait-and-see before the payrolls," said David
Thebault, head of quantitative sales trading at Global Equities
in Paris.
"This week's macro data has been pretty much in line. Recent
earnings have been good, so this pullback looks like a bout of
profit taking. With their books already up some 40 percent, a
lot of traders are cashing in, and with the bonuses down a lot,
there is no real incentive to do more than that."
Around Europe, Britain's FTSE 100 index <> was down 0.4
percent, Germany's DAX <> fell 0.3 percent and France's
CAC 40 <> eased 0.2 percent.
Delhaize <DELB.BR> gained 6.2 percent after the Belgian
supermarket group raised its 2009 operating profit forecast and
reassured about its ability to cope with tough trading
conditions in its main U.S. market.
Deutsche Telekom <DTEGn.DE> added 2.8 percent after the
telecom operator reported consensus-beating third-quarter
figures which included better than expected bottom-line figures.
Computer consultancy Capgemini <CAPP.PA> dropped 4.1 percent
after posting a worse-than-expected drop in third-quarter sales.
(Additional reporting by Joanne Frearson in London; Editing by
David Holmes)
($1 = 0.6053 pound)
