European shares slip after rally, Telefonica drops
* FTSEurofirst 300 retreats from highs hit on Thursday
* Telefonica falls after Q1 profits miss forecasts
* Prospect of new ECB stimulus keeps some traders bullish
By Tricia Wright
LONDON, May 9 (Reuters) - European shares retreated on Friday as a disappointing business update from leading telecoms group Telefonica sobered the mood after a rally the previous day.
The pan-European FTSEurofirst 300 index, which on Thursday hit a 2014 peak of 1,359.07 points that marked its highest level in around six years, was down 0.4 percent at 1,353.48 points by 1506 GMT.
Shares in Spain's Telefonica fell 2.7 percent after the company posted a 23 percent fall in first quarter net profits that missed market expectations.
Energy services group Petrofac slumped by 15.4 percent after it issued a profit warning.
Around two thirds of companies listed on the pan-European STOXX Europe 600 index have posted first-quarter updates so far, of which half have missed consensus earnings forecasts, according to Thomson Reuters StarMine data. Continuación...