LONDON, Sept 25 (Reuters) - European shares edged lower on Friday to hit a more than two-week closing low for the second day, as weaker financials outpaced gains in heavyweight energy stocks.
The FTSEurofirst 300 of top European shares unofficially closed 0.2 percent lower at 985.62 points in a choppy session, after trading between 990.43 and 982.12 points.
The index, which tumbled 1.9 percent to a two-week closing low on Thursday, was down 2.1 percent on the week.
Banks, which have rallied 166.5 percent since March, were among the top losers as Group of 20 leaders met in Pittsburgh for talks on possible tighter banking regulation.
Credit Suisse, UBS, Lloyds Banking Group, Deutsche Bank, Barclays, Julius Baer and BNP Paribas were down 0.2-5.6 percent.
New orders for long-lasting U.S. manufactured goods fell unexpectedly in August, dropping by their biggest margin in seven months, while sales of newly built U.S. single-family homes rose in August, short of expectations.
However, U.S. consumer sentiment rose in late September to the highest since January 2008.
Heavyweight oil producers lent some support to the pan-European index, as crude prices rose above $66 a barrel on heightened tension between the West and Iran over Tehran's nuclear programme.
BP, BG Group, Royal Dutch Shell and Tullow Oil put on 0.3-3.3 percent.
"The most compelling reason for buying equities is because the authorities continue to operate unusual policy. We are moving in the equity world into valuations probably above long-term average," said Jim Reid, head of European equity strategy and global fundamental credit strategy at Deutsche Bank in London.
"If they continue to put every measure, every stimulus into place, there is no reason why equities can't continue to trade above their long-term average, especially if bond yields stay very low."
(Reporting by Dominic Lau)