Europe shares dip after 4 days of gains; BP rises

* FTSEurofirst 300 dips 0.2 pct after 4-day winning run

* Miners, banks fall; BP up on asset sale talk, well hopes

* For up-to-the-minute market news, click on [STXNEWS/EU]

By Dominic Lau

LONDON, July 12 (BestGrowthStock) – European shares drifted lower on
Monday, with miners down on weaker Chinese copper import data
although asset disposal reports lifted oil major BP (BP.L: ).

By 1028 GMT, the FTSEurofirst 300 (.FTEU3: ) index of leading
European shares was down 0.2 percent at 1,020.08 points,
breaking a four-day winning run.

The index posted its biggest weekly rise in a year last week
on hopes that U.S. corporates would be reaping strong profits in
their quarterly results.

Some analysts said the likely strong second-quarter earnings
may draw little comfort for investors as companies were likely
to be wary in their outlook because of belt-tightening to combat
high debt and budget deficits in Europe.

“The austerity measures and the slowdown in major markets
will probably force companies to be a little bit cautious on
their outlook and that will probably have an effect on the
market in the short term,” said Mark Bon, a fund manager at
Canada Life in London.

Miners came under pressure after data showed a drop in
Chinese copper imports for a third month in June, stoking fears
of a demand shortfall. However, the country’s overall exports
rose 43.9 percent in June from a year earlier and imports were
up 34.1 percent. [ID:nBJC002598]

The STOXX Europe 600 basic resources index (.SXPP: ) fell 1.3
percent, with BHP Billiton (BLT.L: ), Rio Tinto (RIO.L: ) and
Eurasian Natural Resources (ENRC.L: ) down 1.2 to 2 percent.

The basic resources index carried a one-year forward
price-to-earnings of 11.42, compared with its 10-year average of
12.44 and 10.1 for the benchmark STOXX Europe 600 (.STOXX: ),
according to Thomson Reuters DataStream.

Banks were also softer ahead of stress test results later
this month. German magazine Der Spiegel reported that Europe’s
banking stress test included a haircut on German sovereign debt
under certain conditions in its worst scenario. [ID:nLDE66A061]

The European banking sector (.SX7P: ) slipped 0.5 percent.

Across Europe, Britain’s FTSE 100 (.FTSE: ) was flat,
Germany’s DAX (.GDAXI: ) ticked 0.1 percent higher and France’s
CAC 40 (.FCHI: ) drifted down 0.1 percent, while the Thomson
Reuters Peripheral Eurozone Countries Index (.TRXFLDPIPU: )
dropped 1.3 percent.

BP HIGHER

BP shares advanced 6.7 percent to their highest in nearly a
month, boosted by reports of asset disposals to help pay for the
oil major’s Gulf of Mexico spill and hopes for a new system to
capture almost all the spewing oil. [ID:nLDE66B0GF]

Other gainers included drugmaker GlaxoSmithKline (GSK.L: ), up
0.7 percent as fears sparked by regulatory scrutiny of its
diabetes pill Avandia subsided.

Aluminium group Alcoa (AA.N: ) will kick off the U.S. earnings
season on Monday. Other major companies to report results this
week include JPMorgan Chase (JPM.N: ), Bank of America (BAC.N: ),
Citigroup (C.N: ) and Google (GOOG.O: ).

“We have such a strong run last week and we have got
quarterly earnings from the U.S. this week, you don’t want to be
buying ahead of those unless you know those figures are pretty
good,” a trader said.

“But having seen such a strong run, a lot of that has been
priced in.”

UBS said in a note on Friday that its client flows data
showed investors had turned net buyers of cyclicals in the past
four weeks for the first time since mid-April.

Investors had turned net buyers in the construction sector
and the selling in the metals and mining sector had eased off,
though telecoms continued to see most net selling, it said.
(Additional reporting by Atul Prakash; Editing by Michael
Shields)

Europe shares dip after 4 days of gains; BP rises