* FTSEurofirst 300 down 0.1 pct, Euro STOXX 50 down 0.1 pct
* Rajoy's victory in Galicia fuels Spanish bailout hopes
* Bearish double-tops taking shape on charts -Aurel BGC
By Blaise Robinson
PARIS, Oct 22 (Reuters) - European stocks dipped on Monday
and a key index fell further from a one-month high hit last
week, as investors worried about corporate profits after a
string of disappointing results.
But losses were limited by renewed hopes that debt-stricken
Spain will soon request a bailout after Prime Minister Mariano
Rajoy clinched election victory in his home region of Galicia on
Sunday in a result seen as supportive for his austerity drive.
According to European officials and analysts, Rajoy had
wanted to wait until the regional elections before requesting a
bailout, which would trigger the European Central Bank's
bond-buying programme aimed at lowering the country's high
"This bailout is what the market is waiting for before
reviving the summer rally," a Paris-based trader said.
"The systemic risks have receded a lot, investors are
scooping up banking shares and buying all the market's dips.
Europe needs to rescue Spain and stop contagion once and for
all; then this crisis should be over."
Most euro zone banks gained ground on Monday, with Credit
Agricole up 0.9 percent, UniCredit up 1
percent and Bankia up 5.5 percent.
At 0811 GMT, the FTSEurofirst 300 index of top
European shares was down 0.1 percent at 1,110.78 points.
The index last week surged to just a few points below a
14-month high hit in mid-September, before dropping 0.8 percent
on Friday, hurt by weak corporate earnings from U.S. bellwethers
such as General Electric.
The global conglomerate posted weaker-than-expected
quarterly revenue and set a cautious tone for next year, warning
that it expects the tough economic environment to continue.
The euro zone's blue chip Euro STOXX 50 index
was down 0.1 percent at 2,539.88 points, further retreating from
a four-week high hit last Thursday.
"We're now seeing double tops around the resistance levels.
We're very cautious because the risk is that people lose
patience as the indexes fail to break above the resistances and
the consolidation becomes a correction," Aurel BGC chartist
Gerard Sagnier said.
Around Europe, UK's FTSE 100 index was down 0.2
percent, Germany's DAX index fell 0.2 percent, and
France's CAC 40 slipped 0.2 percent.
Philips Electronics featured among the top gainers
after the firm posted forecast-beating results and said it is on
a "good trajectory" to meet its 2013 targets.