--Stocks post mild losses ahead of Samaras's meetings with Merkel, Hollande --Cyclicals are the biggest drag amid worries about global growth --Investors reassessing chances of more Fed easing --Sterling slips ahead of UK GDP release By Michele Maatouk European stocks were slightly lower Friday, with cyclical stocks under pressure amid worries about global growth, and the euro was a little weaker against the dollar ahead of key meetings of Greece's prime minister with France and Germany, as investors reassessed the prospects for another round of stimulus from the Federal Reserve. Moves in equity markets were fairly muted and at 0750 GMT, the benchmark Stoxx 600 index was down 0.3% at 266.97. The U.K.'s FTSE 100 was 0.2% lower at 5763.39, Germany's DAX was down 0.3% at 6931.95 and France's CAC 40 was down 0.4% at 3417.51. In terms of sectors, cyclicals--whose performance is closely tied to the overall economy--were the biggest drag Friday, a sign that global growth concerns are weighing on investors' minds. The Stoxx Europe 600 basic resources index fell 2.2%, while the corresponding indexes for autos and banks slipped 1.6% and 1.0%, respectively. "Investors, who had been cruising through the summer on a wave of optimism, appear to be finally waking up to reality," said Rebecca O'Keeffe, head of investment at Interactive Investor. "The continued lack of agreement and follow-through on Europe; deteriorating conditions in Spain -- which might lead to a full bailout and concerns on the state of Chinese growth and the lack of stimulus measures are all negative factors for investors," she added. Outside Europe's core, Spain's IBEX 35 was down 0.2% at 7268.70 and Italy's FTSE Mib was off 0.8% at 14,832.84. Greece's ASE Composite index was up 0.3% at 631.34. In currencies, the euro was fetching $1.2538 from $1.2564 late Thursday in New York, after rising to a seven-week high Thursday on expectations for Fed easing. Meanwhile, the pound was a bit lower against the dollar, trading at $1.5847 from $1.5862 ahead of the second release of second-quarter gross domestic product data, due at 0830 GMT, while September gilts were up 0.22 at 121.17. The data are widely expected to show a small upward revision from the 0.7% contraction previously reported. "Absent significant upward revision in the growth numbers we doubt that the release can change the perception of lingering economic weakness in the U.K.," said forex analysts at Citigroup. "A negative surprise from today's data would underscore the need for further stimulus - both monetary and fiscal," it added. After Federal Reserve official James Bullard poured cold water Thursday on expectations that the Fed might announce another round of quantitative easing in September, market participants were looking ahead to Chairman Ben Bernanke's speech at Jackson Hole next week for any clues on the Fed's next policy move. Investors will also turn their attention to the next European Central Bank policy meeting on Sept.6 for more clarity on the prospects for ECB stimulus. Meanwhile, uncertainty about Greece was keeping investors on edge, with the country's Prime Minister, Antonis Samaras, set to meet with German Chancellor Angela Merkel later Friday and French President Francois Hollande on Saturday. Greece has requested a two-year extension to meet its deficit targets that would allow it to spread cuts to 2016 instead of 2014, without asking its euro-zone partners for more money. More time for Greece, however, would cost its creditors at least 20 billion euros, according to Greek government officials. Merkel and Hollande met Thursday to discuss what message will be delivered to Athens, with both agreeing that Greece shouldn't expect to be given any leeway unless it implements the required reforms. No final decisions are expected to emerge from the meetings with Samaras, but market participants will watch closely for any comments by EU leaders. October Nymex crude oil futures were down $0.74 at $95.53 per barrel and the October Brent oil contract was down $0.69 at $114.32. Spot gold was at $1,665.00, down by $4.70 while the September Bund contract was up 24 ticks at 143.74. Write to Michele Maatouk at michele.maatouk@dowjones.com

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