Europe stocks halt brisk one-week rally

PARIS, July 28 | Wed Jul 28, 2010 11:38am EDT

PARIS, July 28 (Reuters) - European stocks ended lower on Wednesday, halting a brisk one-week rally as an unexpected drop in U.S. durable goods orders revived worries on the economy and prompted investors to book some of their recent gains.

The FTSEurofirst 300 .FTEU3 index of top European shares unofficially closed 0.3 percent lower at 1,050.67 points, after rising by as much as 0.7 percent in early trade.

The Euro STOXX 50 .STOXX50E, the euro zone's blue chip index, ended down 0.1 percent at 2,765.83 points after rising to as high as 2,791.24 points, where it ran into major resistance.

"The Euro STOXX 50 is hitting a ceiling around 2,790 points, which represents highs hit in June and May, and also the index's acceleration point on the downside in April," said Vincent Ganne, technical analyst at IG Markets in Paris.

Banks ended mixed following lofty gains on Tuesday after strong results in the sector and on news of a scale-back of looming capital reforms. Societe Generale (SOGN.PA) rose 2 percent while Dexia (DEXI.BR) fell 2.3 percent.

French carmaker PSA Peugeot Citroen (PEUP.PA) fell 4 percent following a surge in the stock earlier this month, after the company's warning of a tougher economic context in the second half eclipsed strong first-half results.

(Reporting by Blaise Robinson)

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