* FTSEurofirst down 0.78 percent after Friday's record surge
* Banks fall, details of U.S. rescue package awaited
* Commodity shares track crude and metal prices higher
By Joanne Frearson
LONDON, Sept 22 (Reuters) - European shares fell on Monday,
led by banks as investors awaited details of a U.S. rescue
package for the financial sector, offsetting a rise in
commodities stocks tracking higher metal and crude prices.
At 0825 GMT, the FTSEurofirst was down 0.78 percent at
1,141.79 points after an 8.2-percent rise on Friday, its biggest
one-day gain on record.
Banking stocks were the top weighted losers on the index
with HSBC <HSBA.L>, Barclays <BARC.L>, Societe Generale
<SOGN.PA>, Banco Santander <SAN.MC> and Lloyds TSB <LLOY.L> down
between 1.25 and 4.5 percent.
On Friday, the European banking sector jumped following
temporary bans on short-selling of financial stocks and on the
U.S. government's broad bailout plan.
"We need to see more details from the rescue package. What
is missing is the price the U.S. authorities are going to pay
for the toxic assets. This will determine the further
performance of the banking sector," said Heino Ruland, analyst
at FrankfurtFinanz.
Washington proposed a $700-billion taxpayer-funded plan in
an effort to ease the global credit crisis and reverse the U.S.
housing slump.
"In the long run, the package will be a burden on the U.S.
economy as taxpayers will have to pay. Investors are
disappointed with no further news details of the package," added
Ruland.
Meanwhile, Goldman Sachs <GS.N> and Morgan Stanley <MS.N>
are giving up their investment bank status in return for cover
under the U.S. Federal Reserve's wing to survive the crisis that
forced rival Wall Street firm Lehman Brothers <LEHMQ.PK> to file
for bankruptcy.
UBS <UBSN.VX> was up 2 percent.
The FTSE 100 <> index was down 0.76 percent, the German
DAX <GDAXI> was 0.28 percent lower and France's CAC 40 <>
slipped 0.6 percent.
COMMODITIES TOP GAINERS
Energy shares were higher after crude prices <CLc1> gained
$1.90 to $106.45 a barrel. BP <BP.L>, Royal Dutch Shell <RDSa.L>
and BG <BG.L> were up 1.1-2.3 percent.
Miners tracked metal prices higher with copper <MCU3=LX> up
2.2 percent. Eurasian Natural Resources <ENRC.L>, BHP BILLITON
<BLT.L>, Vedanta Resources <VED.L> and Xstrata <XTA.L> rose
between 2.3-3.85 percent.
But the surge in commodity prices also sparked inflation
fears, hurting retailers.
In the food and drug retail sector, Carrefour <CARR.PA>,
Ahold <AHLN.AS> and J Sainsbury <SBRY.L> were down between
1.4-2.7 percent.
In the chemical sector, which uses oil-based inputs, Bayer
<BAYG.DE>, Akzo Nobel <AKZO.AS> and Air Liquide <AIR.PA> were
down between 2-2.2 percent.
EDF <EDF.PA> gained 0.85 percent after the Guardian reported
lawyers for British Energy <BGY.L> and the group were last night
completing paperwork on a 12.4 billion pound takeover of the
nuclear power generator, with a view to signing off the deal in
time for a stock market announcement on Tuesday.
Air France-KLM <AIRF.PA> was down 2.3 percent after RBS cut
the group to "sell" from "hold".
ASML <ASML.AS> was 4.3 percent lower as ING downgraded it to
"sell" from "hold".
Analysts said that the bailout package may be positive for
stocks but added the damage from a year-long credit crisis had
spread further into the economy.
"From a top down stand point this will not change too much
in Europe, which is clearly facing a recession," said Ruland.
(Editing by Paul Bolding)
