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* STOXX 600 ends at one-week low
* UK's FTSE 100 rises as sterling loses more ground
* Edenred falls after UBS downgrade
* RWE slumps as Innogy unit debuts
By Sudip Kar-Gupta
LONDON, Oct 7 (Reuters) - Continental European stock marketsfell on Friday, with vouchers company Edenred andairline easyJet among the worst performers, although anew slump in sterling propped up Britain's FTSE 100.
The pan-European STOXX 600 index ended down by 0.9percent at a one-week low. The STOXX 600 has fallen by around 7percent since the start of 2016.
"European stocks look utterly uninteresting to me at themoment. Corporate profits are weak and the economy remains weakas well," said Andreas Clenow, chief investment officer atSwiss-based ACIES Asset Management.
Edenred fell 7.2 percent after UBS cut its rating on thestock to "neutral" from "buy". EasyJet fell 3.3 percent afterbroker downgrades following its profit warning on Thursday.
However, the FTSE 100 managed to gain 0.6 percent, since theslump in sterling should benefit exporters and help the index'sinternational companies .
Sterling slid on new concern that British Prime MinisterTheresa May's government will back a "hard Brexit" where Britainleaves the European Union's single market in order to imposecontrols on immigration.
That could hinder inward and outward trade and constrict theforeign investment needed to fund Britain's current accountdeficit, one of the biggest in the developed world.
Concern over European banks were also weighing on stocks,said Francois Savary, chief investment officer at Geneva-basedfund management and consultancy firm Prime Partners.
Deutsche Bank edged up 0.5 percent after sourcessaid Qatari investors who own the largest stake in Deutsche Bankdo not plan to sell their shares and could consider buying moreif the embattled German bank decides to raise capital.
Its shares however remain near record lows as the bank isfighting a fine of up to $14 billion from the U.S. Department ofJustice over the alleged mis-selling of mortgage backedsecurities.
Investors are also concerned about bad debts in the Italianbanking system.
"Europe seems to offer value, but concerns over thefinancial system and political uncertainties - particularly withthe French and German elections next year - call for caution,"said Savary, who has reduced his European equity allocation.
RWE fell 7.4 percent after shares in its Innogy debuted on the stock market struggling for most of thesession to move above their issue pricey, reflecting the limitedgrowth potential for its businesses. (Additional reporting by Atul Prakash and Danilo Masoni;Editing by Andrew Heavens)
