* FTSEurofirst 300 index falls 0.2 percent
* Energy, banking stocks weigh
* Defensive pharma stocks gain
By Christoph Steitz
FRANKFURT, Dec 18 (Reuters) - European shares were slightly down in choppy midday trade on Thursday with falls in blue chip energy and bank stocks outweighing the rises in drugmakers.
At 1157 GMT, the pan-European FTSEurofirst 300 index of top European shares was down 0.2 percent at 827.10 points, having traded between 823.20 and 833.02.
The index has fallen about 45 percent so far this year.
Energy stocks led the fallers, taking the most points off the index, as oil remained at less than $41 a barrel.
BP, StatoilHydro, BG Group, and Royal Dutch Shell fell 1.2 percent to 3.6 percent.
However, grim data about the euro economy appeared to be already factored into the market.
Germany's Ifo business climate index deteriorated sharply in December, falling to 82.6 from 84.0 in November, the lowest pan-German figure since reunification in 1990.
"It's not a new thing that little attention is being paid to big European economic indicators," said Joerg Rahn, senior economist at MM Warburg.
"The markets are already looking ahead, one step further and special factors such as a year-end rally may play a role."
In the UK, British retail sales rose unexpectedly in November, while public sector net borrowing rose to its highest monthly total since records began, the Office for National Statistics said.
"The bigger picture is fundamentally disastrous," said Giuseppe-Guido Amato, investment analyst at Lang & Schwarz.
"But the sentiment of the market participants is bad enough that I think we could very well see a rally based on hope."
"What you need now is commodities and shares in companies that have a good debt position."
PHARMA UP
Drugmakers added the most points to the index as investors turned to the relative safety of defensive stocks.
GlaxoSmithKline, AstraZeneca and Sanofi-Aventis were up between 1.5 percent and 3.3 percent.
The DJ Stoxx European healthcare index has been the best performer this year, falling 20 percent compared with a decline of more than 60 percent for banks and miners as a credit crisis shook investor confidence.
Banks were lower with BNP Paribas retreating 7 percent after it said it could not proceed with Fortis stake acquisition as planned because of Brussels court decision. HSBC fell 6.1 percent, investors worried about likely dividend cuts and capital raising at the bank.
Retail stocks were lower after French retail giant Carrefour fell 8 percent as it warned it expected sales growth of 6.5 percent in 2008 at constant exchange rates, down from a previous target of about 7 percent.
The DJ Stoxx European retail sector index was 1.1 percent lower, with Metro and Marks & Spencer down 1.1 percent and 2.5 percent, respectively.
Across Europe, the FTSE 100 index was up 0.1 percent, Germany's DAX was 0.9 percent higher and France's CAC 40 was down 0.7 percent. (Additional reporting by Joanne Frearson in London; Editing by Andrew Macdonald)