Europe stocks flat; utilities gain, financials weak

* FTSEurofirst 300 index up 0.04 pct

* Nestle, ING fall after results

* E.ON gains after earnings beat forecasts

By Joanne Frearson

LONDON, Aug 12 (Reuters) - European shares were flat in early trade on Wednesday, with gains in the utility sector offsetting falls in financials and food producers, as investors awaited the outcome of the U.S. Federal Reserve's meeting.

By 0909 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.04 percent at 932.87 points, having been down as low as 924.30 points earlier. The pan-European index has surged 43 percent since hitting a floor in early March.

"The market is all looking a bit tired today. It has had a very good run now and it is now time to take stock. We are getting closer to September which is traditionally one of the worst months for the market, so maybe investors are thinking about that," said Howard Wheeldon, strategist at BGC Partners.

Financials were heavyweight losers on the index. Dutch bancassurer ING Groep fell 5.2 percent as profits came in well below the expectations. [ID:nLC136922]

Finnish insurance company Sampo was down 1.3 percent after it reported a surprise drop in second-quarter pretax earnings, weighed by weaker dividend income from investments, but stuck to its outlook for 2009. [ID:nLC672333]

In the banking sector, HSBC , Barclays , Banco Santander and Deutsche Bank were 0.4-1.1 percent lower.

Food producers were in the doldrums. Nestle slipped 3.1 percent after it said organic sales grew 3.5 percent in the first half, missing forecasts. [ID:nLC195886]

BHP BILLITON FALLS

Miners were lower as copper

BHP Billiton was down 0.5 percent after it gave a cautiously optimistic outlook for commodities demand after posting a 51 percent dive in second-half profit, its first profit fall in seven years. [ID:nSYD494816]

However, energy stocks gained as crude prices steadied at around $69 a barrel. BG Group , Royal Dutch Shell and Tullow Oil were up 0.4 to 2.1 percent.

E.ON was up 4 percent after it reported earnings that beat market expectations, following strong results from major European peers such as France's EDF and Iberdrola . [ID:nL0124017]

Later on investors will focus on the outcome of the Fed's policy-setting committee meeting at 1815 GMT, which is seen holding its benchmark overnight rate in a range of zero to 0.25 percent.

"I don't think you are going to get anything negative out of the Fed today. What you want to see is a central bank that is not going to take any risks on the deflationary side and withdraw policy earlier," said Bernard McAlinden, strategist at NCB Stockbrokers.

"As long as you see the Fed in that mode, it will be good," he said.

Across Europe, the FTSE 100 <.FTSE> index was down 0.1 percent, Germany's DAX <.GDAXI> was up 0.3 percent and France's CAC 40 <.FCHI> was 0.03 percent higher.

Elsewhere, Chinese stocks sank 4.7 percent to their lowest close in four weeks, while Japan's Nikkei average <.N225> slipped 1.4 percent retreating from a 10-month high. [ID:nLC473427] [ID:nT50222] (Editing by Hans Peters)