Financials, oil weigh on European shares

LONDON, May 9 (Reuters) - European shares fell on Friday, notching up their first weekly loss in a month as renewed concern over the outlook for the financial sector and a record high oil price dragged on the broader market.

The FTSEurofirst 300 index of top European shares fell 1.3 percent to close at an unofficial 1,343.43 points. Declining shares outnumbered advancers by about five to one.

"You get the feeling from the corporate sector that the international credit crisis is taking its toll and this will change the entire landscape of earnings forecasts, which for the time being are still quite upbeat," said Heino Ruland, a strategist for FrankfurtFinanz.

"The rally is running out of steam. It's more to do with the fact that people are realising the economy in Europe is turning down."

Adding to concern about the economic outlook was crude oil CLc1 hovering just shy of record highs above $126 a barrel.

Banks were the largest collective drag on the market, although French drugmaker Sanofi-Aventis (SASY.PA: Quote, Profile, Research) was the biggest individual negative weight after the threat of generic competition for its blockbuster blood-thinner Plavix surfaced in Europe. Sanofi shares were down nearly 6 percent. (Reporting by Amanda Cooper)