* FTSEurofirst 300, STOXX Europe 600 both down 0.2 pct
* Commerzbank falls 4.4 pct as discounted rights issue looms
* Stan Chart sheds 4.2 pct as Carson Block bets against
* Losses capped by some solid corporate results
By Francesco Canepa
LONDON, May 13 European shares pulled back from
five-year highs on Monday, led lower by struggling lender
Commerzbank and some technical selling on overbought
Shares in Germany's No.2 bank fell 4.5 percent as sources
said it may offer shares at a step discount in a rights issue
this week, signalling limited appetite for the stock and
weighing on the European banking sector.
It was the top faller on Germany's Dax index, down
0.5 percent at 8,240.73 points and the pan-European FTSEurofirst
300, down 0.2 percent at 1,230.97 points at 0800 GMT.
Both indexes were deep in "overbought" territory, their
Relative Strength Indexes - a momentum indicator - showed,
leading some short-term technical traders to book profits.
"If (the Dax) falls below 8,200 I reckon we can see a
further selloff," ETX Capital strategist Ishaq Siddiqi said.
"...The temptation to book profit is very strong in the
market, especially because we don't have any fresh catalyst."
Standard Chartered, down 4.3 percent in volume of
72 percent of its 90-day average, was another major faller.
Traders cited a Bloomberg report that Carson Block, who runs
short-seller research firm Muddy Waters, is betting against the
UK financial firm's debt because of deteriorating loan quality.
The STOXX 600 Europe banking index fell 1.3 percent.
Some solid corporate results helped European indexes limit
their losses, with Italian motorway operator Atlantia
up 1.6 percent after a quarterly update.
French carmaker Renault added 2.3 percent after
saying its partner Nissan Motor Co contributed 433
million euros ($561.69 million) to first-quarter earnings.
The STOXX Europe 600 index, down 0.2 percent at
304.3 points, has risen 7.5 percent since mid-April, fuelled by
stimulus measures by central banks, leading some investors to
wonder whether a pause may be due.
Strategists at Deutsche Bank said the longer-term trend
remained positive, citing stronger data from the United States
and early signs of a turnaround in Europe.
"The upside to our year-end Stoxx 600 target of 315 has
fallen to 3 percent, but we remain both strategically and
tactically positive on euro area equities," they write in a