Europe shares fall for 2nd day; miners, autos slip

* FTSEurofirst 300 index closes 1.1 percent lower

* Miners down on worries about China tightening

* EasyJet slumps after warning losses may double

By Brian Gorman

LONDON, Jan 20 (Reuters) - European shares fell on Thursday, with miners among the casualties, as investors worried that China will have to undertake further monetary tightening to combat inflation after strong growth numbers.

The pan-European FTSEurofirst 300 <.FTEU3> index of top shares fell 1.1 percent 1,139.63 points, its lowest close since Jan. 10, after falling 1.3 percent on Wednesday.

Chinese growth soared past forecasts and inflation slowed less than expected, heightening concerns the government will tighten monetary policy. [ID:nTOE70J02S]

"The growth figure clearly surprised the market and rekindled fears over inflation and the possibility of further monetary tightening," said Jeremy Batstone-Carr, strategist at Charles Stanley.

The news on China, the world's biggest metals consumer, caused metals prices to fall. They were also pulled down by a stronger dollar. Miners to fall included heavyweights Anglo American <AAL.L>, BHP Billiton <BLT.L> and Rio Tinto <RIO.L>, down between 3.2 and 4.7 percent.

Among energy companies, BP <BP.L> and BG <BG.L> fell 2.4 and 2.3 percent respectively, as crude prices <CLc1> slipped.

Carmakers also featured among the worst performers, with German companies hit by worries exports to China would ease.

BMW <BMWG.DE> and Daimler <DAIGn.DE> fell 4.1 percent and 3 percent respectively. Italy's Fiat <FIA.MI> dropped 3.8 percent after JPMorgan cut its rating to "underweight" from "neutral"; Fiat Industrial <FI.MI> fell 5 percent.

"The cyclical sectors did well in the second half of 2010. It's whether their rerating can be sustained," said Batstone-Carr. "There's an oversupply in the auto sector ... U.S. companies have been saved and imbalance between supply and demand remains."

Upbeat news from the United States, the world's biggest economy, did little to arrest the decline in equity markets.

U.S. home resales jumped more than expected despite bad weather as sellers cut prices, while weekly jobless claims fell sharply, offering some hope for the economy's two key trouble spots. [ID:nN20105802]

Wall Street was lower around the time European bourses were closing. The Dow Jones <.DJI>, S&P 500 <.SPX> and Nasdaq Composite <.IXIC> were down between 0.5 and 1.1 percent. Across Europe, Britain's FTSE 100 <.FTSE> fell 1.8 percent, while Germany's DAX <.GDAXI> and France's CAC40 <.FCHI> fell 0.8 and 0.3 percent respectively.

Spain's benchmark IBEX <.IBEX> rose 0.8 percent.

EASYJET FALLS

British low-cost airline easyJet <EZJ.L> slumped 16.2 percent after saying first-half losses might double due to higher fuel prices and tough economic conditions, after it took a 31 million pound hit from the big freeze and strikes late last year. Ryanair <RYA.I> fell 6.5 percent.

GlaxoSmithKline <GSK.L> fell 3.3 percent, with traders citing further fallout from the drugmaker's statement this week that it will take a legal charge of 2.2 billion pounds, as well as a downgrade by Morgan Stanley.

On the upside, Dexia <DEXI.BR> rose 5 percent after the Franco-Belgian banking and insurance group said it was finalising a funding deal with French mail operator and financial services provider La Poste. [ID:nLDE70J1EO]

"Markets have had a very good December and early January but the results from major U.S. and European companies have been very much in line, leading to a period of profit-taking and a pause for breath ... There has been some disappointing economic data this week that has forced institutional investors to reassess inflation concerns," a London-based trader said. (Additional reporting by Atul Prakash; Editing by David Holmes)