* STOXX 600 dip 0.3 pct
* Fresnillo rises as investors buy gold
* Ubisoft sinks after cutting sales forecast
* Thyssenkrupp gains on Tata Steel merger hopes
* Britain's exit from Lloyds Bank boosts stock
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the Reuters Live Markets blog on Eikon, see cpurl://apps.cp./cms/?pageId=livemarkets)
By Helen Reid
LONDON, May 17 European shares fell on Wednesday
amid a global pullback in stock markets as worries about
political turmoil in the United States led investors to seek
safety after a strong run sent regional benchmarks to record
The pan-European STOXX 600 fell 0.3 percent, as
major regional benchmarks tracked a global dip in stocks and the
dollar as concerns over U.S. President Trump multiplied.
Euro zone blue chips and the bloc's broader
index of stocks both dropped 0.6 percent.
Britain's FTSE 100 on the other hand hovered close
to its record high hit on Tuesday, outperforming European peers
as gains among miners supported it.
Despite their falls on Wednesday, European benchmarks remain
near recent highs, having risen sharply as investors pile in to
the region on the back of an economic recovery, robust company
earnings and voters' rejection of populist parties in elections.
"Markets broke upwards with the disappearance of concerns
around the French election. Quite a lot of fast money came in
and markets are just pausing now to digest that," said Stephen
Macklow-Smith, head of European equities at JP Morgan Asset
Ubisoft Entertainment, the third-biggest global
entertainment company, fell 6 percent after it cut its mid-term
sales forecast, reporting results near the bottom end of its
target range after the close on Tuesday.
Raiffeisen Bank was a bright spot on a negative
banking sector, up 3.5 percent after its first-quarter profit
jumped more than expected as write-downs shrank.
Lloyds Bank gained 1.9 percent after the British
government sold its last remaining shares in the bank, marking
the end of an era after one of the largest financial crisis
But the Netherlands' largest domestic lender ABN Amro
fell 3.2 percent after its results, with traders
citing a lower net interest margin and capital ratio, though the
headline net income beat expectations at 615 million
Thyssenkrupp was the top European gainer, up 4
percent after Tata Steel agreed the terms of a deal to cut
benefits for its British pension scheme, removing a major
obstacle to the potential merger of its steel assets with the
German steel maker.
Thyssenkrupp's labour boss said the pensions deal does not
lessen workers' opposition to a possible merger, however.
Gold miner Fresnillo rose 2.8 percent as the price
of the safe-haven asset rose to a two week high.
Tullow Oil gained 2 percent after JP Morgan
reiterated its 'overweight' rating on the stock, saying the oil
company had improved its funding position, and valuation had
returned to more compelling territory.
Norwegian fertilizer maker Yara also got a boost
from broker Liberum raising it to 'buy' from 'sell', saying
prices of urea, a key ingredient in fertilizers, are close to a
trough with fewer capacity additions ahead.
European earnings continued to paint a bright picture for
the region's equities, with earnings growth for the quarter seen
at 19 percent, according to Thomson Reuters data.
(Reporting by Helen Reid, Vikram Subhedar; Editing by Hugh