European shares fall on growth gloom, Spain; Ifo eyed

* FTSEurofirst down 0.2 pct, Euro STOXX 50 down 0.5 pct
* Growth concerns weigh on cyclical stocks
* Banks fall as Spain hesitates over bailout request

By Francesco Canepa
LONDON, Sept 24 (Reuters) - European shares fell slightly on
Monday, with investors refocusing on the gloomy economic outlook
and Spain's unresolved debt crisis as euphoria over global
monetary stimulus efforts faded.
Cyclical stocks led a selloff on the pan-European
FTSEurofirst 300 index, which was down 0.2 percent at
1,114.60 points by 0703 GMT, giving away most gains made in the
previous session on speculation Spain was moving closer to
asking for international financial support.
The market stayed within its recent trading range as it
awaited Germany's Ifo business climate index at 0800 GMT, which
might serve as a catalyst for intraday moves as the latest sign
of how badly Europe's debt crisis is affecting its largest
economy.
Spain's Economy Minister Luis de Guindos said on Saturday
the country would not rush to seek a bailout that many investors
believe is close to inevitable.
Euro zone banks shed 0.6 percent, with Spain's
Bankia and Banco De Sabadell the top fallers
at 1.9 percent and 1.7 percent, respectively.
In a sign of investor reluctance to add to a recent rally
fuelled by central bank interventions, the FTSEurofirst 300
stopped short new 14-month highs on Friday and trimmed gains in
late trade to end broadly flat for the week, which had been
marked by soft data from Europe and China.
The index has thus far failed to break above its July 2011
high of 1,130.
"(The sideways market is set to continue) most likely until
we get more information on the Spanish issue," said Ishaq
Siddiqi, a strategist at ETX Capital, citing structural reforms
expected from Madrid on Thursday.
"The liquidity rally looks like it's over and global growth
worries are back on the agenda. It's a very light day on the
whole so it's difficult to say today is going to be the day we
see a change in price action."
He flagged the Ifo index, which is expected to show
business morale edging up in September while the number of
people out of work likely rose as economic growth slows,
according to a Reuters poll.
The euro zone Euro STOXX 50 index, down 0.5
percent at 2,565.59, has risen nearly 20 percent since late
July, boosted by the prospect of interventions by the European
Central Bank and the U.S. Federal Reserve to shore up debt
markets and the economy.
Charts on the index December futures, down 0.2
percent at 2,557 points, suggested profit taking may ensue if
the index breaks below its mid-September low.
"On a break of 2,523 we'd look for a pullback," technical
analysis firm Futures Techs said in a note.
"There are plenty of things pointing towards this being the
next tradeable move (and an early September low of) 2,425 is the
next bold support to target."