* FTSEurofirst loses 2.1 percent after Friday's record surge
* Investors worry about detail, progress of U.S. plan
* Commodity shares track crude and metal prices higher
By Sitaraman Shankar
LONDON, Sept 22 (Reuters) - European shares came down to
earth with a 2.1-percent fall on Monday after a record surge in
the previous session, on doubts surrounding the $700 billion
U.S. rescue plan for the financial sector.
The pan-European FTSEurofirst 300 <> index of top
European shares ended 2.1 percent lower at 1,127.08 points after
a record surge of more than 8 percent on Friday.
Banks took the most points off the index, led by HSBC
<HSBA.L>, which fell 5.8 percent, and Societe Generale
<SOGN.PA>, which lost 3.6 percent.
Analysts said that several questions dogged the massive U.S.
rescue plan, with members of the U.S. Congress calling for
changes in the proposals.
"It's just too big to analyse on a one-day view," said John
Haynes, strategist at Rensburg Sheppard Investment Management.
"Not too much real money is coming off the sidelines. The
real money is still thinking about life. The Fed, I think, is
going to win in the end, but as to whether stocks go up or down
in the next three months, it's the toss of a coin."
Credit analyst Stephane Zeisel at Barclays Wealth Research
said in a research note: "The devil will be in the details and
questions remain, for instance, on the price setting and profit
and loss-sharing mechanism."
Group of Seven nations welcomed the U.S. markets plan and
said they were prepared to step up international cooperation to
protect the world's financial and banking system.
Outside financials, other big losers included aerospace and
defence group EADS <EAD.PA>, which slumped 6.3 percent as the
dollar fell to a fresh three-week low against the euro. Car
shares BMW <BMWG.DE> and Peugeot <PEUP.PA> fell 3.7 percent and
5 percent.
Across Europe, Britain's FTSE 100 <> lost 1.4 percent,
Germany's DAX <> ended 1.3 percent lower and France's CAC
<> fell 2.3 percent.
U.S. stocks <.SPX> <> <> were 1.9-2.3 percent lower
as investors worried that the U.S. rescue plan might hit a bump
in Congress.
COMMODITY SURGE
Commodity shares added most points to the index. Energy
shares were higher after crude prices <CLc1> gained $5 to
$109.60 a barrel. BP <BP.L>, Royal Dutch Shell <RDSa.L> and BG
<BG.L> jumped 1.7-4.4 percent
Miners tracked metal prices higher with copper up 2.8
percent. Eurasian Natural Resources <ENRC.L>, BHP Billiton
<BLT.L>, Vedanta Resources <VED.L> and Xstrata <XTA.L> rose
between 2.2-3.7 percent.
Shares in Holcim <HOLN.VX> were the top losers in Europe,
falling 18 percent after Russian cement maker Eurocement took a
6.5 percent stake but said it did not intend to bid for the
Swiss group.
Market participants believed that there had been a mis-trade
in the stock on Friday that lifted it 20 percent in the last
minutes of trade, but the Swiss bourse ruled that out.
The travel and leisure sector took a hit from higher oil
prices, with airlines such as Air France-KLM <AIRF.PA>,
Ireland's Ryanair <RYA.I> and Britain's EasyJet <EZJ.L> down
between 2.8 and 8.3 percent.
Rensburg Sheppard's Haynes said that high grade corporate
debt offered investment opportunities.
"The risk/reward standpoint for high grade financial debt is
pretty favourable. We're telling investors to start taking
equity risk through the back door, for instance by buying a
corporate bond fund."
(Additional reporting by Sarah Marsh in Frankfurt; Editing by
Greg Mahlich)
