* FTSEurofirst 300 falls 0.3 pct, down for second session
* Greece concerns hit banking shares
* BP shares in Frankfurt sink on oil spill fallout
* For up-to-the-minute market news, click on []
By Atul Prakash
LONDON, May 3 (Reuters) - European shares fell in thin trade
on Monday, with banks slipping on concerns a massive bailout
package for Greece may face political problems and on doubts
about whether Greece can sustain the tough austerity measures.
China's move on Sunday to raise the proportion of deposits
that lenders must keep in reserve at the central bank, and
prospects of tougher banking regulations in the United States
also hurt market sentiment, analysts said.
Financial stocks were among the top losers, with STOXX
Europe 600 banking index <.SX7P> falling 0.3 percent. UBS
<UBSN.VX>, Banco Santander <SAN.MC>, BBVA <BBVA.MC> and Popular
<POP.MC> fell 0.5 to 1.7 percent.
At 0812 GMT, the FTSEurofirst 300 <> index of top
European shares was down 0.3 percent at 1,059.11 points after
falling 0.7 percent in the previous session. It dropped 2.7
percent last week, recording its third straight week of
declines, hammered by mounting fears over sovereign debt in the
euro zone.
"The fate of Greece is in the hands of the people of Greece.
They have to agree as well," said Koen De Leus, economist at KBC
Securities, in Brussels.
"We have had a great rally for more than a year and it's
normal that there is going to be some push back. Investors are
looking for excuses to take profits."
European finance ministers triggered a record 110 billion
euro ($146.5 billion) bailout for Greece on Sunday after Athens
committed itself to years of painful austerity. []
The emergency aid, the most ever for a country, alleviated
some fears of a near-term sovereign debt default, but the
package still has to obtain parliamentary approvals and left
open the question of which fiscally vulnerable country in Europe
might be next. [] []
GREECE CONCERNS
Markets are deeply sceptical that Athens will be able to
deliver on its latest promises for additional spending cuts and
tax increases to reduce its budget gap to 3 percent of its
economy by 2014, from more than 13 percent.
The European Central Bank said on Monday it suspended its
minimum credit rating threshold on Greek sovereign debt,
allowing the country to carry on participating in ECB lending
operations even if rating agencies downgrade it further.
[]
Commodity shares were also under pressure, with crude oil
prices <CLc1> falling, to trade below $86 a barrel on concerns
about euro zone's fiscal woes and fresh steps by China to cool
its economy.
Among mining companies, Eramet <ERMT.PA>, Boliden <BOL.ST>
and Aurubis <NAFG.DE> fell 0.6 to 2.4 percent. Oil company ENI
<ENI.MI>, Repsol <REP.MC> and Total <TOTF.PA> shed 0.8 to 1
percent.
BP <BP.L> shares in Frankfurt <BP.F> fell 7 percent after
the huge oil slick caused by an underwater leak continued to
creep toward the U.S. Gulf Coast on Monday, with the Obama
administration pressing the energy major to stem the oil gushing
from its ruptured offshore well.
Across Europe, Germany's DAX <> was down 0.4 percent,
while France's CAC 40 <> fell 0.6 percent.
UK and Japanese markets remained closed for a public
holiday.
(Editing by Mike Nesbit)
