European shares led lower by JC Decaux and Raiffeisen

(ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report for more details) Updates prices, adds details)

* FTSEurofirst 300 index drops 0.5 percent

* JC Decaux (Other OTC: JCDXY - news) slumps as brokers cut estimates on stock

* Raiffeisen drops as merger plan unsettles some investors

* Banco Popolare (Amsterdam: PB8.AS - news) touches record low after surprise loss

By Sudip Kar-Gupta and Danilo Masoni

LONDON/MILAN, May 11 (Reuters) - European shares slipped on Wednesday as some weak earnings reports pushed the market lower after two days of gains.

The pan-European FTSEurofirst 300 index and the European STOXX 600 index were both down by around 0.5 percent by 1445 GMT.

Among the worst performers was outdoor advertising group JC Decaux. The stock slumped 9.6 percent after a weak second-quarter outlook led several investment banks to cut their ratings and price targets on the shares.

Austria's Raiffeisen Bank dropped by 10.2 percent on concerns over the company's plans to merge with its unlisted parent company Raiffeisen Zentralbank.

However, shares in Norwegian publishing company Schibsted surged 12.2 percent after the company reported first-quarter core earnings above expectations.

Thomson Reuters StarMine data show 60 percent of companies on the STOXX 600 index have met or beaten forecasts with their quarterly earnings so far, in many cases by cutting costs to offset falling revenues. But the FTSEurofirst 300 index is down nearly 10 percent so far in 2016,

"I'm still in the bearish camp, and I think that any rallies on the market are for selling. Some company results have beaten expectations, but you have to remember by just how much some of these expectations had already been lowered," said Terry Torrison, managing director at Monaco-based McLaren Securities.

Shares (Berlin: DI6.BE - news) in Banco Popolare fell 9 percent to a record low. The Italian bank reported an unexpected first-quarter loss Tuesday night because of loan writedowns, the main concern over Italian banks.

Poste Italiane (Dusseldorf: 29884131.DU - news) fell 1.8 percent after Italian Economy Minister Pier Carlo Padoan said the government may sell some of its 65 percent share in the recently listed post office. A trader at an Italian bank said current market conditions mean the sale might happen in September.

Today's European research round-up

ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.

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Mike Dolan, Markets Editor EMEA.

(Additional reporting by Danilo Masoni in Milan, editing by Larry King)