* FTSEurofirst 300 falls for 2nd day; down 0.2 percent
* Worries about peripheral euro zone debt levels hurt banks
* For up-to-the-minute market news, click on [STXNEWS/EU]
By Atul Prakash
LONDON, Nov 11 (Reuters) - European stocks fell on Thursday, with weaker financials on fresh worries about sovereign debt levels in peripheral euro zone countries outpacing firmer mining shares, which climbed on underlying strength in China's economy.
At 1218 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 0.2 percent at 1,107.59 points after falling 0.7 percent on Wednesday. It is up 71 percent since a record low in March 2009, but is up just 6 percent in 2010.
Banks lost ground on renewed concerns about debt levels in some European countries. The premium investors demand to hold 10-year Irish government bonds rather than German benchmarks hit a euro era peak as investors fretted about Ireland's debt pile and its ability to fund itself. [ID:nLDE6AA0N7]
"There is no doubt that European debt condition will continue to unnerve markets from time to time. A little bit of focus has moved down from Greece to Ireland," said Henk Potts, equity strategist at Barclays Wealth.
"Markets are cautious. There are concerns about the speed and strength of economic growth next year. Rebounding corporate earnings momentum will also start to slow down in 2011."
The Irish central bank governor said on Wednesday a huge bank recapitalisation programme had failed to reassure investors. Portugal's final debt issue this year drew solid demand on Wednesday but at a high price. [ID:nLDE6A90IZ]
The Thomson Reuters Peripheral Eurozone Countries Index .TRXFLDPIPU fell 1.8 percent, while the STOXX Europe 600 banking index .SX7P slipped 1.2 percent. Royal Bank of Scotland (RBS.L), Bank of Ireland (BKIR.I) and Unicredit (CRDI.MI) slipped 1.7 to 9.1 percent.
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Bank exposure to Irish debt: r.reuters.com/fez84q
Euro zone struggles with debt graphic
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