* 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
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 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.
"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.
The Thomson Reuters Peripheral Eurozone Countries Index fell 1.8 percent, while the STOXX Europe 600 banking index slipped 1.2 percent. Royal Bank of Scotland, Bank of Ireland and Unicredit slipped 1.7 to 9.1 percent.
MINERS IN DEMAND
Miners, however, advanced. The STOXX Europe basic resources index rose 2 percent as copper hit a record high and other key base metals -- aluminium, nickel and zinc -- rose 1.3 to 1.6 percent.
Analysts said that metals prices were boosted by growing evidence about the Chinese economy's underlying strength and a belief that inflation, which hit a 25-month high, might drive investors to hard assets.
"The markets are hoping for incremental steps from Chinese authorities to slow rather than totally cool down economic growth and they have been moving in the right direction," Potts said. "China's outlook still remains very positive."
Anglo American, Antofagasta and Xstrata jumped 1.9 to 5.2 percent.
Investors kept a close eye on a Group of 20 meeting in South Korea. The United States sought to shore up support to tackle global economic problems, although the meeting of developed and emerging nations looked set to achieve little of substance.
"The G20 often has a negative effect (for equities), in that if there is no agreement, people think we are heading down the road of protectionism," said Justin Urquhart Stewart, director at Seven Investment Management.
"A positive move would be if people realise there are imbalances, and say they will work towards easing those."
Technology shares fell after Cisco Systems, one of the sector's prime bellwethers, gave a dismal revenue outlook overnight. The STOXX Europe 600 Technology Index fell 0.9 percent, with STMicro, Alcatel-Lucent and Nokia down 0.7 to 2.3 percent. (Additional reporting by Brian Gorman; Editing by Jon Loades-Carter)