* FTSEurofirst 300 falls 0.2 percent after 15-month highs
* Energy shares track weaker crude, drugmakers advance
* For up-to-the-minute market news, click on []
By Atul Prakash
LONDON, Jan 6 (Reuters) - European equities drifted lower on
Wednesday after hitting a new 15-month peak, with weaker energy
stocks on the back of a decline in crude oil prices outpacing
stronger pharmaceutical shares.
At 1006 GMT, the FTSEurofirst 300 <> index of top
European shares was down 0.2 percent at 1,058.20 points after
touching 1,064.36, its highest since October 2008. The index
rose 26 percent last year and has surged 64 percent since
hitting a record low last March.
Energy shares tracked crude oil <CLc1>, which snapped a
nine-day winning streak, staying under $82 a barrel after
industry data showed a surprise rise in U.S. distillate
inventories last week even though heating oil supplies fell.
BP <BP.L>, Royal Dutch Shell <RDSa.L>, BG Group <BG.L>,
Tullow Oil <TLW.L>, Total <TOTF.PA> and StatoilHydro <STL.OL>
shed 0.2-1.1 percent.
Banks turned negative after early gains, with Standard
Chartered <STAN.L>, HSBC <HSBA.L>, Barclays <BARC.L>, Lloyds
<LLOY.L>, Societe Generale <SOGN.PA>, Credit Agricole <CAGR.PA>
and UBS <UBSN.VX> falling 0.2-1.5 percent.
Investors awaited U.S. ADP employment numbers, due at 1315
GMT, which were expected to show private employers cut only
73,000 jobs in December, less than half the 169,000 positions
cut in November. The report is seen as a preview to government
monthly payroll update due on Friday.
Bernard McAlinden, investment strategist at NCB Stockbrokers
in Dublin, said the market could remain steady over the next few
weeks, but was still underpinned by low interest rate
expectations and improving earnings.
"The U.S. jobs data on Friday will be important, but the
feedback you are getting shows that the trend is clearly
improving. Expectations for the robustness of growth have
improved significantly over the last few weeks."
Charts also suggested gains for the market. The FTSEurofirst
300 index has cleanly broken major resistance at around 1,023
points, the 38.2 percent Fibonacci retracement of the bear
market that began in mid-2007. In the medium term, the index may
target 1,140 -- the 50 percent retracement.
Across Europe, Britain's FTSE 100 index <>, Germany's
DAX <> and France's CAC 40 <> fell 0.2-0.4 percent.
PHARMA SHARES DOWN
Drugmakers, generally seen as defensive stocks, were in
demand. GlaxoSmithKline <GSK.L>, Merck <MRCG.DE>, Novartis
<NOVN.VX>, Novo Nordisk <NOVOb.CO> and Roche Holding <ROG.VX>
rose 0.5-1.5 percent.
But British retailer Marks & Spencer <MKS.L> fell 5.4
percent. It posted its first rise in quarterly underlying sales
for over two years, but missed forecasts and joined rivals in
warning of an uncertain 2010.
Cadbury <CBRY.L> shares fell 0.8 percent. Kraft <KFT.N> said
it had a 1.5 percent take-up from Cadbury shareholders for its
hostile bid, but most shareholders are expected to wait to see
if Kraft raises its bid before making their decisions.
Kraft's cash and shares bid is currently worth 765 pence per
Cadbury share or 10.5 billion pounds ($16.8 billion), but under
Britain's takeover rules the U.S. food group has until Jan. 19
to raise its bid while Cadbury shareholders have until Feb. 2 to
make their choice. []
French carmaker PSA Peugeot Citroen <PEUP.PA> rose 3.2
percent after BofA Merrill Lynch upgraded its recommendation on
the stock to 'buy' from 'neutral', citing higher revenue and
earnings estimates, and saying the analyst consensus was "way
too low". []
Investors awaited economic indicators due later, including
euro zone new industrial orders for October, weekly U.S.
mortgage market index, Challenger U.S. job cuts for December,
and U.S. ISM non-manufacturing for December.
Markets in Finland, Sweden, Austria and Greece were closed
on Wednesday for the Epiphany holiday.
(Editing by Dan Lalor)
