* FTSEurofirst 300 down 1.3 percent, lost 5.4 pct in 3 weeks
* Banks fall as sovereign debt worries eclipse UBS's results
* BP tumbles 5 percent; down 17 pct since start of oil spill
* For up-to-the-minute market news, click on []
By Blaise Robinson
PARIS, May 4 (Reuters) - European stocks fell sharply on
Tuesday morning, as mounting doubts over Greece's bailout and
fears of contagion to other euro zone countries rattled
investors.
German economy minister Rainer Bruederle said the
international bailout package agreed for Greece was not intended
to cover the country's entire financial requirements for the
next three years.
A Moody's Investors Service official said the bailout does
not mark the end of the country's fiscal crisis because the key
is whether the country can adjust to meet the budget deficit
targets it has agreed to.
At 0918 GMT, the FTSEurofirst 300 <> index of top
European shares was down 1.3 percent at 1,050.61 points.
The index has lost 5.4 percent over the past three weeks,
hurt by mounting concerns on sovereign debt in the euro zone
which have also weighed on the currency.
The 110 billion euros ($147 billion) bailout of Greece
unveiled over the weekend failed to dissipate worries on whether
it can sustain the tough austerity measures, and concerns on the
risk of contagion to other countries such as Spain and Portugal,
whose credit ratings were downgraded last week.
Spanish stocks were under pressure, with the IBEX 35 index
<> down 3.3 percent. Banco Santander <SAN.MC> was down 4.8
percent and BBVA <BBVA.MC> down 5 percent.
"Corporate results are coming in above forecast. But the
bottom line is European stocks are trading at a discount
compared to U.S. stocks because of the deficit worries in
Southern Europe, and that may last for a while," said Achim
Matzke, European stock indexes analyst at Commerzbank in
Frankfurt.
Banking stocks surrendered early gains spurred by UBS's
forecast-beating results and turned negative in mid-morning,
with BNP Paribas <BNPP.PA> down 2 percent and Credit Suisse
<CSGN.VX> down 4.7 percent.
UBS, which posted its strongest quarterly net profit since
the crisis begun, boosted by robust fixed-income trading
revenues and higher wealth management margins, slid 1.7 percent
after gaining more than 1.5 percent in early trade.
BP EXTENDS DROPS ON OIL LEAK
Oil company BP's <BP.L> shares dropped 5 percent as the
massive oil spill in the Gulf of Mexico continued to grow.
The stock has fallen around a sixth in value in the two
weeks since the company announced a fire on the Deepwater
Horizon drilling rig. Almost $32 billion has been wiped off the
company's value since then, according to Thomson-Reuters data.
Heavyweight mining shares also lost ground, with BHP
Billiton <BLT.L> and Rio Tinto <RIO.L> dropping 5.2 percent and
4.4 percent respectively, after the Australian government
imposed a new 40 percent mining tax. []
Around Europe, Britain's FTSE 100 index <> was down 1
percent, Germany's DAX index <> down 0.7 percent, and
France's CAC 40 <> down 1.4 percent.
So far this year, the FTSEurofirst is up a meagre 0.8
percent, the FTSE 100 up 1.6 percent, the DAX up 2.8 percent and
the CAC 40 <> down 4.1 percent. This compares with a gain
of 7.8 percent for Wall Street's S&P 500 <.SPX> year to date.
(Editing by Dan Lalor)
($1 = 0.7508 euro)
