* FTSEurofirst 300 down 1.1 pct
* Concerns intensify after weak U.S. manufacturing data
* Euro zone's peripheral banks among worst hit
By Harpreet Bhal
LONDON, June 15 (Reuters) - European share prices fell on Wednesday, with sentiment hit by disappointing manufacturing data from the United States, and peripheral euro zone stocks fell sharply on renewed concerns over debt troubles in Greece.
The pan-European FTSEurofirst 300 index of top shares closed 1.1 percent lower at 1,088.99 points.
Concerns about a slowdown in the economic momentum intensified after data showed the New York Fed's general business conditions index contracted for the first month since November, while the U.S. consumer price index (CPI) rose by a larger than expected number.
"There's a lack of motivation (among investors) to maintain long positions for any decent amount of time, reflecting the concerns about the economy that are still out there," said Joshua Raymond, market strategist at City Index.
Peripheral euro zone stocks were under pressure, with the Thomson Reuters Peripheral Euro Zone index down 3.8 percent, as euro zone finance ministers failed to agree how to make private creditors contribute to a second bailout for Greece.
A senior Greek government source said Prime Minister George Papandreou told the head of the conservative opposition on Wednesday he would be willing to step down and make way for a national unity government.
Financials were under pressure, with the STOXX Europe 600 banking index falling 1.9 percent. The index has lost nearly 20 percent since mid-February on worries that a haircut on Greek debt or even a default would spark a raft of big write-offs in the sector and send shockwaves across the region.
Adding to the downbeat mood in the sector, Moodys put the credit ratings of French banks under review for a downgrade due to their exposure to Greek debt.
After markets closed Moody's also said it will review its ratings of subsidiaries of Portuguese banks for possible downgrades.
OPTIONS AND FUTURES VOLATILITY
Traders said the equity market was expected to experience some volatility ahead of the expiry of stock index futures and options, and individual stock options, on Friday.
Among individual shares, Swedish budget fashion retailer H&M
Peer Inditex fell 1.6 percent after posting a 10 percent rise in net profit, though margins were eroded as high raw material prices weighed.
Looking ahead, European equities indexes still have 10 percent upside potential by year-end, but any gains from current rangebound trade may not kick in until September, Bank of America-Merrill Lynch's head of European equity strategy, Gary Baker, said.
Recent weak macro data and concerns over global growth mean "no-one is willing to make a heroic trade at the moment" and it could take another month or so of "soggy data" before investors feel emboldened to take a more aggressive stance, he said. (Editing by Greg Mahlich)