Last checked at 
(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* Software giant SAP biggest drag on STOXX 600
* London's FTSE 100 outperforms on energy boost
* British telecoms rise on UK Huawei ban
* ZEW says outlook for Germany largely unchanged in July
* JP Morgan's better-than-expected results see bank cut
losses
(Updates to close)
By Sruthi Shankar and Susan Mathew
July 14 (Reuters) - European stocks were hit by a selloff in
technology shares on Tuesday, as U.S. peers slumped on fears of
new coronavirus restrictions, while London blue-chips
outperformed on a boost for the telecoms and energy sectors.
The pan-European STOXX 600 index fell 0.8% after
two days of gains, with technology stocks posting their
biggest drop in over a month, down 2.6%.
Shares in SAP SE, ASML Holding NV,
Prosus NV and Infineon Technologies AG fell
between 2.6% and 5%, tracking continued declines in U.S. tech
majors on worries that another lockdown in California to contain
a surge of coronavirus infections may slow a U.S. economic
recovery.
"California is a tech haven, so this is going to have a
disproportionate effect on tech stocks," said Connor Campbell,
markets analyst at SpreadEx.
Globally, a Reuters tally showed the number of coronavirus
infections hit 13 million on Monday, climbing by a million in
just five days.
Travel & leisure stocks, one of the pandemic's worst
casualties, fell 2.7% for the worst session in three weeks.
London's FTSE 100 cut losses to end slightly higher
as oil stocks cheered recovering crude prices. BP rose
2.6%.
Sources said BP delivered 3 million barrels of Iraqi oil to
the Shanghai International Energy Exchange this month, becoming
the first major global trader to make a physical delivery since
China launched the futures market in 2018.
Telecom operators BT Group and Vodafone rose
after Prime Minister Boris Johnson ordered equipment from
Chinese telecom equipment maker Huawei be banned from Britain's
5G network by 2027.
Meanwhile, data on Tuesday showed euro zone industry output
recovered from record declines, but was lower than expected.
Separately, Germany's ZEW research institute, said the outlook
for Europe's largest economy remains largely unchanged in July
versus the previous month.
"The latest ZEW index paints a good picture of how the
recovery of the German recovery could evolve... (it) adds to the
evidence of a levelling off in the German economy," Carsten
Brzeski, chief economist, eurozone at ING.
Germany's DAX index ended 0.8% lower.
European banks cut a chunk of their losses after
largest U.S. lender JPMorgan Chase & Co posted a
smaller-than-expected 51% drop in second-quarter profit.
Healthcare stocks were among the biggest drags, with Roche
down 1.6%. The Swiss drugmaker struck a $1.7 billion
cancer drug pact with Blueprint Medicines, which
includes rights to the U.S. company's lung cancer drug
pralsetinib.
(Reporting by Sruthi Shankar in Bengaluru and Joice Alves in
London; Editing by Shounak Dasgupta, William Maclean)
