Europe shares fall early; banks, commodities slip

                                
 * FTSEurofirst 300 index falls 1.8 pct
                                
 * Banks take most points off index
                                
 * Oils slip on lower crude
                                
 
                                
 By Brian Gorman
                                
 LONDON, July 6 (Reuters) - European shares fell to a
seven-week low on Monday, on worries that economic recovery may
still be some way off, with energy companies and banks leading
the fallers, and ahead of the start of second-quarter earnings.
                                
 At 0810 GMT, the FTSEurofirst 300 <.FTEU3> index of top
European shares was down 1.8 percent at 827.58 points, after
falling as far as 827.00, its lowest level since May 14.
                                
The European benchmark index is up more than 28 percent from
its lifetime low of March 9. However, it has fallen for three
straight weeks, with some analysts saying it has risen too fast,
relative to the tangible evidence of economic recovery.
                                
 The heavyweight banking sector took most points off the
index. BNP Paribas <BNPP.PA>, Banco Santander <SAN.MC>, Credit
Suisse <CSGN.VX> and HSBC <HSBA.L> were down between 0.9 and 1
percent.
                                
  "There's a feeling corporate results are still going to be
poor," said Justin Urquhart-Stewart, investment director at
Seven Investment Management, in London. 
                                
 "People are asking where the growth is going to come from.
They're looking at data and noticing it's still getting worse,"
though not at the same rate as before, he added.
                                
 Worries on lower demand pushed commodity prices lower. Crude
prices <CLc1> fell more than 4 percent to below $64 a barrel.
Total <TOTF.PA>, ENI <ENI.MI>, BP <BP.L> and Royal Dutch Shell
<RDSa.L> dropped between 2.5 and 3 percent.
                                
 Copper and other metals also fell. Anglo American <AAL.L>,
Antofagasta <ANTO.L>, BHP Billiton <BLT.L>, Lonmin <LMI.L>, Rio
Tinto <RIO.L>, Vedanta Resources <VED.L>, Xstrata <XTA.L> fell
between 2 and 4.7 percent. 
                                
 
                                
 BASF <BASF.DE> RISES
                                
 Chemicals giant BASF <BASF.DE> was one of a only a handful
of heavyweight stocks to rise, up 0.4 percent, after Banc of
America-Merrill Lynch upgraded it to "buy" from "neutral". 
                                
 In a week shortened by the Independence Day holiday, U.S.
shares also fell for a third straight week. Data showed that the
unemployment rate for both the United States and the euro zone
has risen to 9.5 percent.
                                
 Across Europe, Britain's FTSE 100 <.FTSE>, Germany's DAX
<.GDAXI> and France's CAC-40 <.FCHI> were down between 1.3 and
1.7 percent on Monday.
                                
Japan's Nikkei <.N225> closed 1.4 percent lower on Monday.
                                
In an otherwise thin corporate and economic calendar on
Monday, investors will focus on services U.S. PMI data for June,
expected to show further contraction, but at a slower rate than
before. 
                                
 Futures for the Dow Jones <DJc1>, S&P 500 <SPc1> and Nasdaq
<NDc1> were down between 0.9 and 1.2 percent.
                                
 Aloca <AA>, Pepsi Bottling Group <PBG> and Chevron <CVX> are
among those kicking off second-quarter earnings season later
this week.
                                
 (Editing by Simon Jessop)