FTSE ends 1.2 pct lower, burdened by banks, oil

* FTSE down 1.2 pct, down over 16 pct in 2008

* Oil stocks slip, tracking weaker energy prices

* Banks undercut by Goldman note, outlook

By Michael Taylor

LONDON, July 4 (Reuters) - Britain's blue-chip index ended lower on Friday during a relatively quiet session as banking stocks slipped following a bearish Goldman Sachs note and oil companies tracked softer crude prices.

The FTSE 100 .FTSE shed 63.8 points, or 1.2 percent, to 5,412.8 in thin trading volumes as investors took a breather following the volatile data-fuelled session on Thursday.

"If you look at the technicals and the fundamentals, people think there is still some way for it to fall, probably another 250 points before we get any recovery," said Neil Parker, market strategist at Royal Bank of Scotland.

"Nobody wants to be long in this market ... I would be particularly worried by a lot of inflation numbers that are coming out," he added.