* FTSEurofirst 300 index down 1.1 percent
* Banks fall as Greece woes persist; commods weigh
* For up-to-the minute market news, click on []
By Joanne Frearson
LONDON, April 8 (Reuters) - European equities fell on
Thursday on concerns over debt problems in Greece, with banks
taking a beating, while commodity shares tracked weaker raw
material prices.
By 0837 GMT, the FTSEurofirst 300 <> index of top
European shares was down 1.1 percent to 1,085.60 points, ahead
of the European Central Bank's interest rate decision.
Banks were among the biggest fallers, extending their
declines from the previous session. Banco Santander <SAN.MC>,
Deutsche Bank <DBKGn.DE>, BNP Paribas <BNPP.PA> and UBS
<UBSN.VX> lost 2.1 to 3.2 percent.
Greek bank shares <.FTATBNK> fell 5.1 percent, while the
country's borrowing costs also rose sharply.
"With the Greece situation, there is speculation they may
and try and rework their options ... and there are worries there
may now be a domino effect in the peripheral countries," said
Joshua Raymond, market strategist at City Index.
"Looking towards the ECB, investors will always take money
off the table when there is a degree of uncertainty."
The ECB is expected to help ease the financial squeeze on
Greece on Thursday by fleshing out new lending rules and keeping
euro zone interest rates at a record low of 1.0 percent.
[]
The ECB's rate decision is expected at 1145 GMT, followed by
a news conference at 1230 GMT.
Commodity stocks also fell for the second day running. Oil
fell to below $86 on a stronger dollar and soaring U.S. crude
stockpiles. Energy stocks BG Group <BG.L>, BP <BP.L> and Total
<TLW.L> dipped 0.5 to 1 percent.
MINERS UNDER PRESSURE
Miners were under pressure as gold <XAU=> slipped after
rising to its highest in nearly three months. Anglo American
<AAL.L>, Antofagasta <ANTO.L>, BHP Billiton <BLT.L>, Rio Tinto
<RIO.L> and Xstrata <XTA.L> lost 1.5 to 3.7 percent.
Looking at individual movers, Swedish fashion chain Hennes &
Mauritz <HMb.ST> gained 3.8 percent after it posted
first-quarter earnings above market expectations, raising hopes
for a recovery in consumer spending.
Dutch postal group TNT <TNT.AS> rose 5 percent after it
said it is exploring partnerships or a listing for its mail unit
through a carve-out that could also make a sale of its express
unit easier. []
Meanwhile, economists expect the Bank of England to keep
interest rates at 0.5 percent and not to add to the 200 billion
pounds of asset purchases made under its quantitative easing
programme as inflation eased in line with central bank forecasts
this month and growth remains uncertain.
A rate announcement is due at 1100 GMT.
Across Europe, the FTSE 100 <> index fell 1.1 percent,
Germany's DAX <> lost 1.1 percent and France's CAC 40
<> was 1.5 percent lower.
(Editing by Erica Billingham)
