Banks lead European stocks to session lows

LONDON Jan 15 (Reuters) - European equities extended losses on Tuesday with banks among the main losers ahead of key U.S. earnings, while pharmaceuticals also dipped.

HSBC (HSBA.L), Santander (SAN.MC) and UniCredit (CRDI.MI) were down between 1.8 and 2.6 percent while retailers were also lower.

Citigroup (C.N) is expected to report a fourth-quarter loss later on Tuesday, but investors will focus on everything else Citi has in the works, from raising billions of dollars in new capital to slashing more jobs. Intel (INTC.O) also unveils earnings.

By 0958 GMT, the pan-European FTSEurofirst 300 index .FTEU3 was down 0.7 percent at session lows of 1,422.9 The index has lost more than 5 percent this year after rising 1.6 percent in 2007 in its worst annual performance since 2002. (Reporting by Anshuman Daga)