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* STOXX led lower by banks, oils
* Britain's FTSE 100 hits another peak
* SAP hits 22-year high as tech stocks shine (Adds details, closing prices)
By Danilo Masoni
MILAN, Jan 9 (Reuters) - European shares slipped on Mondayas a pullback in bank stocks more than offset a stronger techsector, while a drop in the pound drove Britain's FTSE 100 index to further record highs.
The pan-European STOXX index slid 0.4 percent,while the FTSE 100 rose 0.4 percent after hitting an all-timehigh of 7,243.76 points in its 10th straight session of gains.
The pound sank to more than two-month lows after weekendcomments from British Prime Minister Theresa May sparked talkthat Britain would drastically rework trade relations with theEuropean Union after Brexit.
"Domestic populist politics trumps the trade card for now,it seems and that is weighing on the pound, whilstsimultaneously giving another boost to the FTSE 100," NeilWilson, Senior Market Analyst at ETX Capital, said in a note.
Banks were the biggest fallers in Europe - the sector'sindex lost 1.7 percent and Italian lenders were down 3.5 percent following a strong start of the year.
The sector has outperformed over the past weeks as hopes forfiscal stimulus in the United States under Donald Trump'sadministration from Jan. 20 have further boosted bond yields,seen as supportive for bank margins.
But after the surge, some brokers have turned less bullish.Credit Suisse reduced its overweight stance on the sector in aglobal equity strategy note on Friday.
Germany's Fresenius Medical fell 6.8 percent,making it the biggest loser on the STOXX, after it and U.S.rival DaVita Inc received subpoenas from federalprosecutors investigating their ties with a charity that helpspatients pay for kidney dialysis.
Among the biggest weights to the STOXX were also oil majorsRoyal Dutch Shell and Total. Oil prices fellsharply as signs that growing U.S. production and record Iraqiexports had raised concerns that additional output would weighon the market.
Among top gainers, French retailer Casino Guichard rose 3 percent after an upgrade from Bank of America MerrillLynch, citing a simplification of the group's corporatestructure as a positive for the stock.
Tech stocks rose 0.7 percent after an upbeat notefrom Citi, which expects the sector to have another bright year,citing appealing fundamentals and earnings prospects.
SAP rose 0.8 percent to a fresh 22-year high after UBS saida survey of customers of the German software maker suggestedthat the company had room to lift its mid-term goals when itreports results late this month.
German carmaker Volkswagen rose 4.9 percent withtraders citing hopes a deal to resolve the U.S. diesel emissionsscandal could be close. Such hopes overshadowed news of thearrest of a top executive in connection with the investigation. (Additional reporting by Kit Rees; editing by Mark Heinrich)
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