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* STOXX 600 down 1.6 pct to 2-week low
* Banks, miners, tech lead sectoral fallers
* Reckitt gains after pulling out of Pfizer race(Adds details, closing prices)
By Helen Reid and Danilo Masoni
Separately, the European Union secured an exemption from
The pan-European STOXX 600 index fell 1.6 percentto its lowest level in more than two weeks, while
The mood was also dampened by a weaker than forecastbusiness activity survey. Euro zone businesses rounded off thefirst quarter of 2018 with their slowest growth in over a year,much weaker than expected, as new business took another hit froma stubbornly strong euro.
"Business sentiment has to be monitored carefully in thecoming months, especially if trade tensions intensify, becauseany further significant deterioration in confidence indicatorsmight signal that the balance of risks starts shifting to thedownside," said UniCredit head of macro research Marco Valli.
Banks, which have been penalized recently weaker thanexpected macro economic data in
Deutsche Bank declined 2.9 percent, still weakafter sharp losses in the previous session when the bank'sfinance chief said a strong euro and higher funding costs wouldhave a
Commerzbank tumbled 6.2 percent after a downgradefrom Kepler Cheuvreux.
Basic resources stocks led sectoral losers, down 2.9percent after copper reversed earlier gains to fall tothree-month lows as escalating concern about
Tech stocks < .SX8P> 2.1 as tariffs on
Chipmakers ams, STMicro, and Infineon, which have led the recent tech stock rally and arefirmly embedded in international supply chains, all fell. .
Deal developments and earnings continued to drive Europeanstock moves.
Reckitt Benckiser shares shone, jumping 4.8 percentafter the British consumer products firm pulled out of thebidding for Pfizer's consumer health unit.
The move reflected relief in the market that Reckitt wouldavoid over-levering or issuing shares for the acquisition.
GlaxoSmithKline, now seen as having a better chanceof buying the Pfizer business, declined 1.7 percent.
Disappointing 2017 results sent United Internetshares down 9.5 percent. Subsidiary Drillisch fell 5.7percent.
Also in tech, Ingenico suffered a 3.4 percent lossafter Kepler Cheuvreux downgraded it, saying full-year guidancenow looked "challenging".
Tech and engineering consultancy Altran fell 3.3percent after launching a share capital increase of
The world’s no.2 cement maker Heidelberg Cementfell 2.3 percent after it announced a dividend slightly short ofanalysts’ average expectations.
Bayer fell 1.4 percent after Australian and EUregulators approved the firm's takeover of Monsanto. "Halfwaythere," wrote UBS analysts, adding all eyes were now on the
Overall, with results season drawing to a close, analystswere becoming more negative on the earnings outlook for Europeanstocks.
(Reporting by Helen Reid and Danilo Masoni, Editing by RichardBalmforth and Hugh Lawson)
