* FTSEurofirst 300 falls 1.1 percent
* Banks give up some of Monday's sharp gains
* For up-to-the-minute market news, click on []
By Brian Gorman
LONDON, May 11 (Reuters) - European shares fell on Tuesday,
after a massive rally on Monday on a $1 trillion package to
prevent the spread of the European debt crisis, as doubts about
Greece's ability to smoothly cut its fiscal deficit persisted.
At 0820 GMT, the FTSEurofirst 300 <> index of top
European shares was down 1.1 percent at 1,027.73 points. It
jumped 7.4 percent in the previous session, the biggest one-day
gain since November 2008, on optimism that a massive bailout
package would prevent Greece's debt crisis from spreading.
The European benchmark is up more than 59 percent from its
lifetime low on March 9, 2009.
Banks, major gainers in Monday's rally, were among the
biggest losers on Tuesday. BNP Paribas <BNPP.PA>, Banco
Santander <SAN.MC>, Barclays <BARC.L>, Royal Bank of Scotland
<RBS.L> and HSBC <HSBA.L> fell between 1.8 and 4.4 percent.
Commodity stocks fell, as metals and oil prices slipped,
hurt by a stronger dollar. They were also hurt by Chinese
inflation edging up to an 18-month high in April and bank
lending topping expectations. []
Japan's benchmark Nikkei 225 <> closed 1.1 percent
lower on Tuesday.
"Chinese inflation was stronger than expected and there are
worries they might put up interest rates and that hit Asia
overnight," said Bernard McAlinden, investment strategist at NCB
Stockbrokers in Dublin.
Energy companies Total <TOTF.PA>, ENI <ENI.MI> and BG <BG.L>
fell between 1.6 and 1.9 percent.
BP <BP.L> fell 1.7 percent, on further worries about the
cost of cleaning up and compensation after an oil spill in the
Gulf of Mexico.
Miners to fall included Anglo American <AAL.L>, BHP Billiton
<BLT.L>, Fresnillo <FRES.L>, Kazakhmys <KAZ.L>, Rio Tinto
<RIO.L>, Vedanta <VED.L> and Xstrata <XTA.L>, down between 2.3
and 3.7 percent.
But McAlinden was positive on the European stock market.
"Economic data has been good, and earnings have been good,
and a combination of this and the outlook for global interest
rates should push equity markets higher," he said.
PORTUGAL TELECOM SOARS
Among individual companies, Portugal Telecom <PTC.LS> jumped
6.4 percent after the company said it had received and rejected
a 5.7 billion euro ($7.65 billion) bid from Spain's Telefonica
<TEF.MC> for its 50 percent stake in Brazil's Vivo <VIVO4.SA>.
Telefonica fell 2.6 percent.
Mail and express delivery company Deutsche Post DPWGn.DE>
rose 3.6 percent after first-quarter earnings beat forecasts.
[]
World no. 4 brewer Carlsberg <CARLb.CO> rose 3.5 percent
after first-quarter profit fell less than expected as the blow
from a beer tax hike in key market Russia was cushioned by solid
performance in other markets.
Exchange operator Deutsche Boerse <DB1Gn.DE> fell 1.3
percent after restructuring charges and lower volumes from
derivatives trading weighed on first quarter earnings.
[]
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC40 <> fell between 1.2 and 1.5
percent.
(Editing by Hans Peters)
