* FTSEurofirst 300 falls 0.6 percent, down for sixth session
* Auto, banking shares under pressure on growth worries
By Atul Prakash
LONDON, Oct 4 (Reuters) - European equities slipped for a sixth straight session to a one-month low on Monday, led lower by automobile shares, with lingering concerns about the state of global economic recovery making investors nervous.
Appetite for risky assets such as equities fell, with the VDAX-NEW volatility index jumping 5 percent to a one-month high. The higher the index, which is based on sell and buy options on Frankfurt's top-30 stocks, the lower the market's desire to take risk.
By 0822 GMT, the FTSEurofirst 300 index of top European shares was down 0.6 percent at 1,051.96 points after touching 1,047.29 -- the lowest since early September.
The index slipped for a sixth straight session, its longest losing streak since January 2009. It fell on Friday on data showing growth in the U.S. manufacturing slowed last month. Investors awaited U.S. monthly factory orders and pending home sales on Monday for more insight on the outlook for the economy.
"On the one hand people are very nervous about the economy, but on the other hand you don't want to be too negative and too short either because you know that (Federal Reserve Chairman Ben) Bernanke is there," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.
"Eventually he will put more money once again into the system," he said. "But I see more risk to the downside for the market than the upside at the moment. Economic outlook remains very weak and it's clear that the world economy is slowing."
Automobile shares, which generally derive strength from a bright economic outlook, dropped 1.8 percent. BMW, Daimler AG, Renault and Fiat fell 1.1 to 2.5 percent.
Across Europe, Britain's FTSE 100, Germany's DAX and France's CAC 40 fell 0.8 to 1.1 percent.
BANKS UNDER PRESSURE
Financials also came under pressure as investors remained worried about their ability to advance at a time when the global economic outlook was not very bright.
The New Economics Foundation (NEF) thinktank said British banks may need another state bailout next year and their borrowing requirements could hit 25 billion pounds ($39.4 billion) a month.
Switzerland has set out to further tighten the reins on UBS and Credit Suisse, requiring them to hold capital well in excess of new standards.
However, media reports suggested that two banks might have to hold even more top-quality capital, indicating that the final number maybe a compromise between the banks and regulators. UBS and Credit Suisse rose 0.5 percent and 1.1 percent respectively.
But the STOXX Europe 600 banking index fell 0.4 percent, with Barclays, BNP Paribas, Societe Generale and Bankinter down 0.6 to 2 percent.
Some analysts, however, stayed positive.
"We think investors are too negative on banks, and we continue to see significant medium term re-rating potential," Bank of America Merrill Lynch said in a note.
"For many investors the Western European bank sector is considered to be without growth ... we forecast 2.5 percent, 3.5 percent and 4.5 percent loan growth in 2010, 2011, and 2012."
The technical outlook was bearish, with the Euro STOXX 50, the euro zone's blue-chip index, down 1 percent at 2,706.19 points to hover below its 50-day moving average and the 50 percent Fibonacci retracement of the index's fall from an April high to a May low at 2,737.62 points. It could get support at around 2,670 -- its 38.2-percent retracement level.
French drugmaker Sanofi-Aventis fell 0.8 percent. It launched a hostile bid for Genzyme at $69 per share, or $18.5 billion, setting off what could be a protracted battle for control of the U.S. biotech company. (Editing by Sharon Lindores)