UPDATE 1-European shares dip as trade-fueled rally loses steam

Shreyashi Sanyal

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* Miners set for worst day in a month

* Defensive stocks gain as risk appetite falls

* STOXX 600 on track for five weeks of gains

* Credit Agricole drops after results (Adds comments, updates market action)

Nov 8 (Reuters) - European shares opened lower on Friday, halting a week-long rally after mixed signals on U.S.-China trade left investors uncertain on whether the two sides were really getting close to signing a deal.

Miners, among the most exposed to the trade conflict and its implications on global growth, dropped by 1.6% and were on track for their worst day in a month, pulling the pan-European STOXX 600 index 0.4% lower.

A bullish few weeks for the world's major stock markets, buoyed by an earnings season that has proved less weak than expected, still has the index on course to log its fifth straight weekly gain.

But doubts over the broader outlook for global growth and President Donald Trump's willingness to come to terms with Beijing over trade continue to weigh.

Defensive plays including telecoms and utilities rose, suggesting appetite for risk remains muted.

"We have to remember that a lot of this rally was based on speculative headlines around trade and people are going to be taking some profits after what has been a decent run," said Craig Erlam, senior market analyst at Oanda in London.

"There was a lot of optimism about the 'phase one' deal, but now we're starting to realize it's not that straightforward."

Global equity markets had cheered news on Thursday that the United States and China had agreed to roll back tariffs on each others' goods in a "phase one" trade deal.

Hopes were dampened, however, after Reuters reported that the plan faced internal opposition in the White House.

Latest data showed China's exports and imports contracted less than expected in October, while German exports rose more than expected in September.

Bank stocks, however, slid 1.2%, hit by declines for some of France's biggest lenders. Shares in Credit Agricole fell 4% as quarterly numbers in its corporate center and retail arms came in below analysts' expectations.

Shares in Natixis fell 5.4% after it trimmed its budget for potential acquisitions to focus on reinforcing existing businesses.

Richemont slipped 4.5% after the luxury goods group said political protests in Hong Kong weighed on sales growth in the six months to Sept. 30.

In one bright spot, telecom Italia (TIM) rose 3.7% after the company said it had made progress in cutting its debt burden as it presses ahead with plans to find an investment partner to help it fund a potential tie-up with smaller rival Open Fiber. (Reporting by Shreyashi Sanyal in Bengaluru; editing by Patrick Graham)