* FTSEurofirst 300 ends 0.1 percent lower
* Peripheral indexes hammered by reignited debt fears
* Euro STOXX 50 breaks below key support level
* Cisco's dismal outlook hurts Europe's tech shares
By Blaise Robinson
PARIS, Nov 11 (Reuters) - European stocks dipped on Thursday, further retreating from two-year highs hit earlier in the week, as investors dumped stocks from the region's peripheral countries on mounting fears over Ireland's debt woes.
While the FTSEurofirst 300 <.FTEU3 index of top European shares fell only 0.1 percent to 1,108.78 points, the Euro STOXX 50, the euro zone's blue-chip index, dropped 0.5 percent to 2,831.22 points, and Ireland's ISEQ index, Spain's IBEX 35, Portugal's PSI20 and Italy's FTSE MIB dropped 0.8-1.6 percent.
The Thomson Reuters Peripheral Eurozone Countries Index fell 1.9 percent to a one-month low.
"It's time to book profits, that's what we're doing. The market is ripe for a correction," said Jean-Yves Dumont, head of asset allocation strategy and funds at Dexia Asset Management, which turned "underweight" on equities on Wednesday.
"Overall it's deja vu, and Europe has put in place a lot of instruments to help avoid a full-blown crisis."
The FTSEurofirst 300 dropped about 15 percent last spring as fears the Greek debt crisis could spread to other euro zone countries and derail the region's frail economic recovery rattled investors.
Irish and Portuguese debt premiums over German government bonds hit highs on Thursday, lifting other peripheral euro zone yields, on growing scepticism that Ireland could escape a Greek-style financial bailout.
Ireland warned a surge in its borrowing costs to record highs had become "very serious". European officials said they were monitoring developments there but denied for a second day running that Dublin was seeking financial aid.
Two-thirds of economists and bond strategists polled by Reuters on Thursday said Ireland will seek international rescue funds before the end of next year.
European banking stocks fell, with Bank of Ireland losing 7.8 percent, Credit Agricole down 2.4 percent and Royal Bank of Scotland down 2.7 percent.
"In the longer term, the outlook remains positive for equities," Dexia's Dumont said. "U.S. macro data has recently improved, stock valuations are still attractive, earnings are very good and investors' risk appetite has been improving."
Adding to negative sentiment on Thursday, the Euro STOXX 50 broke below a key support level, the 38.2 percent Fibonacci retracement of the index's fall from a 2007 high to a 2009 low.
The index's next big support level is at 2,806.39 points, the index's 50-day moving average.
Around Europe, the UK's FTSE 100 index ended down 0.03 percent as losses in banking stocks were offset by gains in mining shares, Germany's DAX index ended up 0.05 percent, helped by Siemens's gains, while France's CAC 40 dropped 0.5 percent, dragged by heavyweight banking stocks.
European technology shares lost ground after Cisco Systems Inc gave a dismal revenue outlook overnight, stunning investors who had hoped for proof of a recovery in technology spending.
The STOXX Europe 600 Technology Index fell 1 percent with STMicro down 3.4 percent and Alcatel-Lucent dropping 2.8 percent.
Siemens gained 2.6 percent after the engineer signalled its confidence with a proposed sharp rise in dividends and a promise of profit growth, driven by emerging markets.
Miners rose as copper raced to a record high, boosted by brisk economic data from top consumer China and persistent supply concerns as inventories fell.
Antofagasta gained 4.8 percent and Anglo American rose 3.4 percent.
(Reporting by Blaise Robinson; editing by David Hulmes)