UPDATE 2-Tech sell-off weighs on Europe as virus fears mount; FTSE 100 outperforms

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UPDATE 2-Tech sell-off weighs on Europe as virus fears mount; FTSE 100 outperforms
Credit: © Reuters.

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* Software giant SAP biggest drag on STOXX 600

* London's FTSE 100 outperforms on energy boost

* British telecoms rise on UK Huawei ban

* ZEW says outlook for Germany largely unchanged in July

* JP Morgan's better-than-expected results see bank cut losses (Updates to close)

By Sruthi Shankar and Susan Mathew

July 14 (Reuters) - European stocks were hit by a selloff in technology shares on Tuesday, as U.S. peers slumped on fears of new coronavirus restrictions, while London blue-chips outperformed on a boost for the telecoms and energy sectors.

The pan-European STOXX 600 index .STOXX fell 0.8% after two days of gains, with technology stocks .SX8P posting their biggest drop in over a month, down 2.6%.

Shares in SAP SE SAPG.DE , ASML Holding NV ASML.AS , Prosus NV PRX.AS and Infineon Technologies AG IFXGn.DE fell between 2.6% and 5%, tracking continued declines in U.S. tech majors on worries that another lockdown in California to contain a surge of coronavirus infections may slow a U.S. economic recovery. .N is a tech haven, so this is going to have a disproportionate effect on tech stocks," said Connor Campbell, markets analyst at SpreadEx.

Globally, a Reuters tally showed the number of coronavirus infections hit 13 million on Monday, climbing by a million in just five days. & leisure .SXTP stocks, one of the pandemic's worst casualties, fell 2.7% for the worst session in three weeks.

London's FTSE 100 .FTSE cut losses to end slightly higher as oil stocks cheered recovering crude prices. BP BP.L rose 2.6%. O/R .L

Sources said BP delivered 3 million barrels of Iraqi oil to the Shanghai International Energy Exchange this month, becoming the first major global trader to make a physical delivery since China launched the futures market in 2018. operators BT Group BT.L and Vodafone VOD.L rose after Prime Minister Boris Johnson ordered equipment from Chinese telecom equipment maker Huawei be banned from Britain's 5G network by 2027. data on Tuesday showed euro zone industry output recovered from record declines, but was lower than expected. Separately, Germany's ZEW research institute, said the outlook for Europe's largest economy remains largely unchanged in July versus the previous month. latest ZEW index paints a good picture of how the recovery of the German recovery could evolve... (it) adds to the evidence of a levelling off in the German economy," Carsten Brzeski, chief economist, eurozone at ING.

Germany's DAX index .GDAXI ended 0.8% lower.

European banks .SX7P cut a chunk of their losses after largest U.S. lender JPMorgan Chase (NYSE: JPM ) & Co JPM.N posted a smaller-than-expected 51% drop in second-quarter profit. stocks were among the biggest drags, with Roche ROG.S down 1.6%. The Swiss drugmaker struck a $1.7 billion cancer drug pact with Blueprint Medicines BPMC.O , which includes rights to the U.S. company's lung cancer drug pralsetinib.

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