* Bank stocks fall across Europe
* Chipmakers rise on Micron's upbeat sector outlook
* London shares jump almost 1 percent(Updates to closing prices)
By Susan Mathew and Medha Singh
March 21 (Reuters) - European stock markets slipped for asecond day on Thursday, weighed down by financial stocks and asharp drop in French-Italian glasses company EssilorLuxottica.
Frankfurt, Madrid, Dublin and Parisall racked up losses, but in London, a surge in energyshares and a weaker pound drove the FTSE 100 up 0.9percent to a more than five-month high.
The pan-European STOXX 600 index ended just 0.04percent lower, with banks weaker after Wednesday's shiftin U.S. central bank policy and a warning from Switzerland's UBSabout investment banking revenues.
Tensions between the French and Italian factions at the topof EssilorLuxottica knocked its shares, whilechemicals group Bayer slid further after a secondU.S. court ruling against Roundup weedkiller.
"Today is a bit of a messy session with the dovishness ofFed from last night, U.S.-China trade doubts and compellingBrexit developments over the last 24 hours," said Spreadexanalyst Connor Campbell.
"The FTSE is definitely benefiting from the pound's rathersevere slump, especially against the dollar and the fact thatmajor commodity stocks have outperformed," Campbell said.
Sterling was on course for its worst day so far this year.
London listed shares of mining firms BHP and RioTinto rose more than 1.5 percent each, while oil and gasmajors BP PLC and Royal Dutch Shell climbed morethan 1 percent.
CHIPS ARE UP
Italian shares finished 0.2 percent higher andchipmakers across Europe were boosted by a surprisingly upbeatoutlook from U.S.-based Micron Technology on Wednesday.Infineon rose more than 1 percent, while STMicrojumped 4.4 percent.
Some analysts stressed the longer-run hope offered tomarkets by both the Fed and the ECB's move to halt or even turnaround monetary tightening.
"By turning as dovish as it has, the Fed perhaps createsbetter conditions for equities to perform well, for businesssentiment to do better and that may come through in the euroarea," said John Davies, G10 rates strategist at StandardChartered Bank in London.
"Against this backdrop there's also Brexit, which isreaching its most nervous moment."
French President Emmanuel Macron warned British PrimeMinister Theresa May on Thursday that Britain would face adisorderly departure from the European Union if she fails to getparliamentary approval for her deal at the third attempt nextweek.(Reporting by Agamoni Ghosh and Patrick Graham and SusanMathew; Additional reporting by Dhara Ranasinghe; editing byJosephine Mason, Jon Boyle and Alexander Smith)