Europe stocks halt recovery rally; data eyed

* FTSEurofirst 300 dips 0.3 pct, Euro STOXX 50 down 0.2 pct

* Euro STOXX 50 fails to break above 200-day moving average

* AXA rises after unveiling business plan

* For up-to-the-minute market news, click on [STXNEWS/EU]

By Blaise Robinson

PARIS, June 1 (Reuters) - European stocks dipped in early trade on Wednesday, halting their week-long recovery as investors awaited U.S. economic data for insight on the outlook of the world's biggest economy.

At 0839 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was down 0.3 percent at 1,138.97 points.

The euro zone's blue chip Euro STOXX 50 <.STOXX50E> index was down 0.2 percent at 2,854.72 points, failing to stay above its 200-day moving average crossed earlier in the day.

The two benchmark indexes have gained around 2.5 percent over the past week, but the recovery rally was losing steam on Wednesday as investors fretted about a recent patch of mixed economic signals from the United States while the Federal Reserve's quantitative easing programme is coming to an end.

Data showed on Tuesday the Conference Board's consumer confidence index falling to 60.8 from a revised 66.0 in April, and well below economists' forecasts for 66.5.

Investors awaited U.S. ADP employment figures for the month of May, due at 1215 GMT, a harbinger for Friday's all-important non-farm payrolls report.

The focus will also be on Institute for Supply Management's monthly factory gauge, due at 1400 GMT.

"It's never good to have sluggish data, but all in all, poor figures from the United States would not necessarily be bad for European stocks," Kepler Capital Markets trader Patrice Perois said.

"We're in a carry trade pattern involving the U.S. dollar. A lower dollar has been boosting equities, that's what people have been playing lately, so anything dragging down the greenback might be good for stocks."

Since late 2008, European stocks and the dollar index <.DXY> have had a negative correlation, with the 30-day rolling correlation at -0.26 on Wednesday.

The euro hit a fresh four-week high against the dollar on Wednesday, although fresh concerns over whether Greece will get a new bailout package, as well as key chart resistance levels were capping the single currency's gains.

Around Europe, UK's FTSE 100 index <.FTSE> was down 0.1 percent, Germany's DAX index <.GDAXI> down 0.2 percent, and France's CAC 40 <.FCHI> down 0.1 percent.

Nokia dropped 9 percent in strong volume, adding to the previous session's slump after the world's biggest mobile phone maker by volume warned sales and margins would fall well below its previous guidance and dropped its full-year outlook.

AXA rose 2.9 percent after the French insurer unveiled 2015 financial targets and sold its Canadian operations.

The Euro STOXX 50 volatility index <.V2TX>, one of Europe's main fear gauge, hit a two-week low on Wednesday, signaling a rise in investors' appetite for risky assets such as stocks.

"It's time to be 'long' equities, but stop playing the indexes and buy good undervalued stocks with sound fundamentals," said David Thebault, head of quantitative sales trading, at Paris-based Global Equities.

"We have M&A deals announced every single day. Buying these stocks is probably the best way to protect your portfolio from a potential correction during the summer." (Reporting by Blaise Robinson; Editing by Louise Heavens)