* FTSEurofirst 300 index down 0.2 pct
* Weak earnings at UBS, BP weigh on sentiment
* U.S. debt ceiling talks in focus
By Josie Cox and Harro ten Wolde
FRANKFURT, July 26 (Reuters) - European shares edged lower on Tuesday weighed down by weaker than expected results from oil major BP and Swiss Bank UBS and investor concern over the lack of a U.S. debt limit deal.
"On the one hand shares are supported by useful outlooks from the Far-East. On the other hand company results have to be digested and they are not offering direct reason to cheer," Michael Sobczak, trader at German WestLB Bank said.
By 0823 GMT, the FTSEurofirst 300 index of top European shares was down 0.1 percent at 1,103.51 points, extending Monday's slide when the shares snapped a four-session winning run.
The index remained firm above its support level of 1,066 -- its March low and a number from which it had previously bounced, but still far from its resistance level of 1,132 -- a number reached earlier this month after strong U.S. data.
UBS was down 1.8 percent at 13.64 euros as poor trading in its investment bank business hit second-quarter profits, confirming fears it will miss targets set in 2009.
The Swiss bank's shares were the biggest fallers in a 0.2 percent stronger STOXX Europe 600 Banks index .
UBS' German counterpart Deutsche Bank
BP shares were down 2.4 percent and weighed on a 0.6 percent weaker STOXX Europe 600 Oil & Gas index after second-quarter replacement cost net income of $5.31 billion fell short of analysts' forecasts. The company also benefited less than rivals are expected to from higher crude prices.
WASHINGTON DEADLOCK
Investors also scrutinized U.S President Barack Obama's speech on Monday in which he called on divided congressional leaders to compromise and break a deadlock over raising the U.S. debt limit.
"Investors remain anxious but are still relatively patient," Felix Parmantier, analyst at Close Brothers Seydler said.
Commerzbank analyst David Schnautz added that Obama remained confident that the stalemate could be resolved if both parties compromised.
"The overall market does not seem to be hugely concerned about the U.S debt ceiling issue," he said.
But others said that the decision itself would not necessarily put a definitive end to the liquidity woes.
"Even if Congress agrees on lifting the debt ceiling, a full-notch downgrade of the U.S. sovereign rating is still in the cards after Moody's and S&P put the triple-A sovereign rating on watch-negative earlier this month," UniCredit analyst Stefan Kolek said.
Later, investors will look to United Kingdom second-quarter Gross Domestic Product (GDP) figures, due for publication at 0930 GMT.
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