European shares fall for second day, led by techs
* FTSEurofirst 300 down 0.8 pct, extends Wednesday retreat
* Euro zone stocks hit as euro regains more ground
* Decline seen as profit taking; medium-term trend intact
By Blaise Robinson
PARIS, March 26 (Reuters) - European stocks fell on Thursday, extending the previous session's retreat, hurt by worries over valuation levels in growth sectors such as technology following strong gains this year.
Euro zone equity indexes managed to trim heavy losses in late trade, however, as the euro currency reversed gains and slipped again.
Shares in Nokia, Alcatel-Lucent, STMicroelectronics, ARM, and ASML lost 1.9 percent to 4.9 percent.
European tech firms, seen as benefitting significantly from the drop in the euro over the past year, had surged 42 percent since mid-October, outpacing the overall market and sending the sector to valuation ratios well above long-term averages.
The sector trades at 20.4 times expected earnings in the next 12 months, above a 10-year average of 16.2 times, while the broad STOXX Europe 600 index currently trades at 16 times expected earnings, according to Thomson Reuters Datastream. Continuación...