* FTSEurofirst 300 index down 1.4 pct
* Banks lower ahead of Bank of America results
* Commodities weigh as prices retreat
By Joanne Frearson
LONDON, April 20 (Reuters) - European shares fell in early
trade on Monday after rising for two consecutive sessions, with
banks down ahead of results from Bank of America <BAC.N> and
commodities slipping after crude and metal prices retreated.
By 0843 GMT, the pan-European FTSEurofirst 300 <>
index of top shares was down 1.4 percent at 803.08 points. The
index rose 1.6 percent to 814.69 points on Friday, its highest
close in more than two months. Over the week, the index rose 4.7
percent.
"We have had a few reasonably good weeks. It is a correction
of the overreaction we have seen in the previous weeks. Now I
think we are going to go through a bit of a lull," said Howard
Wheeldon, strategist at BGC Partners.
The banking sector was lower ahead of the Bank of America
results. BNP Paribas <BNPP.PA>, Banco Santander <SAN.MC>, HSBC
<HSBA.L> and Standard Chartered <STAN.L> were down between 1.3
percent and 5.5 percent.
"This week it is likely to be all about the earnings," said
Bernard McAlinden, strategist at NCB Stockbrokers.
Across Europe, the FTSE 100 <> index was down 0.4
percent, Germany's DAX <> was down 1.8 percent, and
France's CAC 40 <> was 1.5 percent lower.
OILS LOWER, MINERS MIXED
Energy stocks were lower as crude <CLc1> slipped 1.3
percent, weighed down by a rising U.S. dollar and growing
caution about the pace of any global economic recovery.
BG Group <BG.L>, Cairn Energy <CNE.L> and Total <TOTF.PA>
were down between 0.4 percent and 2.9 percent.
Mining stocks slipped as copper <MCU3=LX> fell 1.7 percent,
although stocks within the sector were mixed. Anglo American
<AAL.L>, Antofagasta <ANTO.L> and Eurasian <ENRC.L> were down
between 1.7 percent and 2.8 percent.
Rio Tinto <RIO.L> gained 0.4 percent as it defended itself
against shareholder criticism of its proposed $19.5 billion
tie-up with China's state-owned Chinalco, its rejection of a
takeover bid by BHP Billiton <BLT.L> and its costly 2007
purchase of Alcan. []
On the macro economic front, European Central Bank (ECB)
President Jean-Claude Trichet on Sunday signalled the bank's
likely next move, saying it would cut its headline interest
rate, but only by an additional 25 basis points.
Other officials have sent mixed signals on what
unconventional measures could be adopted. []
The ECB has lagged moves by the U.S. Federal Reserve, Bank
of England and Bank of Japan in making asset purchases on top of
cutting interest rates to near zero to revive their
recession-hit economies.
"There is a view that there is still not enough has been
done to support the European economy. The euro is weaker,"
McAlinden said.
The euro slipped to a one-month low against the dollar on
uncertainty over what the European Central Bank's next policy
easing steps will be.
On the upside, drugmaker GlaxoSmithKline PLC <GSK.L> rose
0.6 percent after saying it had agreed to buy privately owned
U.S. skincare specialist Stiefel Laboratories for up to $3.6
billion.
(Reporting by Joanne Frearson; Editing by Andrew Macdonald)
