* FTSEurofirst 300 down 0.6 pct, Euro STOXX 50 down 1.1 pct
* Unfazed investors putting their faith in ECB - strategist
* Technip slumps after restructuring news (Updates prices, adds detail)
By Alistair Smout and Liisa Tuhkanen
LONDON, July 7 (Reuters) - European shares fell on Tuesday before a euro zone summit billed as the last chance for Athens to cut a rescue deal, but there was no sign of investor panic two days after Greek voters rejected conditions for a new bailout.
The pan-European FTSEurofirst 300 was down 0.6 percent by 1406 GMT, while the euro zone Euro STOXX 50 fell 1.1 percent, adding to Monday’s 2.2 percent drop.
Coutts Global Equity Strategist James Butterfill said investors seemed to be betting on the readiness of the European Central Bank to smooth over any volatility resulting from the Greek crisis.
“We’re surprised with how little markets have sold off following the referendum, but there seems to be faith in the ‘Draghi put’, and peripheral markets have decoupled from Greece,” Butterfill said.
“Markets may well tread water until we get some sort of decision from the European summit.”
France and Germany told Greece on Monday to come up with serious proposals to restart financial aid talks, while the ECB kept a tight grip on funding to Greek banks.
Strategists at BNP Paribas said Sunday’s referendum results did not mean Greece had to quit the euro zone, but did increase the chances it will leave to 70 percent.
“In light of the referendum, the likelihood of the Greek government acceding to creditors’ demands has diminished,” they said in a note.
Among gainers, ProSiebenSat1 added 0.4 percent after sources said talks over a merger with German publishing house Axel Springer had restarted.
Axel Springer - which called speculation that its majority owner, Friede Springer, might relinquish control “unfounded” - rose 3.1 percent.
Evonik gained 2.5 percent and SAP edged 0.7 percent higher after UBS lifted its target price for both stocks. Svenska Handelsbanken rose 3.3 percent, the main gainer on the pan-European index, after a similar upgrade from Deutsche Bank.
On the downside, Technip sank 8.8 percent to its lowest level since January after the oil industry engineering and construction group announced a restructuring programme, booking a 650 million-euro ($719 million) charge and cutting 6,000 jobs.
Rolls-Royce dropped 6.2 percent, following a 6.3 percent loss on Monday, as brokers downgraded the stock after a third profit warning in nine months.
Europe bourses in 2015: link.reuters.com/pap87v
Asset performance in 2015: link.reuters.com/gap87v
Today’s European research round-up
Editing by Ralph Boulton