* Live coverage: cpurl://apps.cp./cms/?pageId=livemarkets
* STOXX led lower by banks, oils
* Britain's FTSE 100 hits another peak
* SAP hits 22-year high as tech stocks shine
(Adds details, closing prices)
By Danilo Masoni
MILAN, Jan 9 European shares slipped on Monday
as a pullback in bank stocks more than offset a stronger tech
sector, while a drop in the pound drove Britain's FTSE 100
index to further record highs.
The pan-European STOXX index slid 0.4 percent,
while the FTSE 100 rose 0.4 percent after hitting an all-time
high of 7,243.76 points in its 10th straight session of gains.
The pound sank to more than two-month lows after weekend
comments from British Prime Minister Theresa May sparked talk
that Britain would drastically rework trade relations with the
European Union after Brexit.
"Domestic populist politics trumps the trade card for now,
it seems and that is weighing on the pound, whilst
simultaneously giving another boost to the FTSE 100," Neil
Wilson, Senior Market Analyst at ETX Capital, said in a note.
Banks were the biggest fallers in Europe - the sector's
index lost 1.7 percent and Italian lenders
were down 3.5 percent following a strong start of the year.
The sector has outperformed over the past weeks as hopes for
fiscal stimulus in the United States under Donald Trump's
administration from Jan. 20 have further boosted bond yields,
seen as supportive for bank margins.
But after the surge, some brokers have turned less bullish.
Credit Suisse reduced its overweight stance on the sector in a
global equity strategy note on Friday.
Germany's Fresenius Medical fell 6.8 percent,
making it the biggest loser on the STOXX, after it and U.S.
rival DaVita Inc received subpoenas from federal
prosecutors investigating their ties with a charity that helps
patients pay for kidney dialysis.
Among the biggest weights to the STOXX were also oil majors
Royal Dutch Shell and Total. Oil prices fell
sharply as signs that growing U.S. production and record Iraqi
exports had raised concerns that additional output would weigh
on the market.
Among top gainers, French retailer Casino Guichard
rose 3 percent after an upgrade from Bank of America Merrill
Lynch, citing a simplification of the group's corporate
structure as a positive for the stock.
Tech stocks rose 0.7 percent after an upbeat note
from Citi, which expects the sector to have another bright year,
citing appealing fundamentals and earnings prospects.
SAP rose 0.8 percent to a fresh 22-year high after UBS said
a survey of customers of the German software maker suggested
that the company had room to lift its mid-term goals when it
reports results late this month.
German carmaker Volkswagen rose 4.9 percent with
traders citing hopes a deal to resolve the U.S. diesel emissions
scandal could be close. Such hopes overshadowed news of the
arrest of a top executive in connection with the investigation.
(Additional reporting by Kit Rees; editing by Mark Heinrich)