Europe shares close down on EU rescue plan doubts

                                
 * FTSEurofirst 300 index closes down 0.4 percent
                                
 * Banks, commodities slip as Greece doubts linger
                                
 * Telefonica falls as Vivo bid rejected
                                
 * For up-to-the minute market news, click on [STXNEWS/EU]
                                
 
                                
 By Joanne Frearson
                                
 LONDON, May 11 (Reuters) - European shares slipped on
Tuesday over doubts the massive rescue plan which boosted stocks
in the previous session was a long-term solution and whether
Greece can deliver budget deficit cuts.
                                
 After losing more than 2 percent during the session, stocks
trimmed losses in late trade as U.S. shares edged higher on Wall
Street.
                                
 Banking stocks led the losers, with the STOXX Europe 600
banking index <.SX7P> slipping 1.8 percent. Spanish banks Banco
Santander <SAN.MC> and BBVA <BBVA.MC> fell 3.3 and 3.1 percent
respectively while Greek banks <.FTATBNK> lost 4.9 percent.
                                
 The pan-European FTSEurofirst 300 <.FTEU3> index of top
shares closed down 0.4 percent at 1,035.00 points after jumping
7.4 percent on Monday on euphoria over the euro zone's $1
trillion rescue package.
                                
 "The roller coaster continues and these extraordinary
measures have made it difficult to invest," said Giuseppe-Guido
Amato, strategist at Lang & Schwarz in Frankfurt. "It is a
politically driven market and there is a huge overnight risk."
                                
 "Investors are very cautious and if in doubt they are out.
The problems are still there and (the bailout measures) are only
treating the symptoms."
                                
 Investor confidence faded on doubts about whether weaker
euro zone economies can meet their part of the bargain and
deliver drastic debt cuts. [ID:nSGE6490HH]
                                
 The market also took a knock after Moody's Investors Service
said late Monday that it may downgrade Portugal's ratings and
could cut its investment grade rating of Greece to junk status.
[ID:nN10225916]
                                
 UK banks HSBC <HSBA.L>, Barclays <BARC.L> and Standard
Chartered <STAN.L> fell 1.3 to 3.1 percent while French bank BNP
Paribas <BNPP.PA> lost 2.3 percent.
                                
 
                                
 COMMODS SLIP
                                
 Miners were also under pressure as copper <MCU3=LX> lost 1.1
percent and Chinese annual inflation pushed up to an 18-month
high in April, raising concerns about potential monetary
tightening measures. [ID:nTOE64A01U]
                                
 Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton
<BLT.L>, Eurasian Natural Resources Corporation <ENRC.L>, Rio
Tinto <RIO.L> and Xstrata <XTA.L> lost 1.4 to 3.9 percent.
                                
 Energy stocks fell, with BP <BP.L>, BG Group <BG.L>, Total
<TOTF.PA> and Cairn Energy <CNE.L> losing 0.7 to 1.6 percent.
                                
 In individual stocks, Spain's Telefonica <TEF.MC> fell 3.7
percent after its hostile bid for Brazil's Vivo <VIVO4.SA> was
rejected by Portugal's Portugal Telecom <PTC.LS>. [ID:nLDE64A0W0]
                                
 However, Portugal Telecom soared 5.9 percent.
                                
 Carlsberg <CARLb.CO> rose 2.1 percent after the world No. 4
brewer posts quarterly results above expectations.
[ID:nLDE6491O4]
                                
 Across Europe, the FTSE 100 <.FTSE> index fell 1 percent,
Germany's DAX <.GDAXI> rose 0.3 percent and France's CAC 40
<.FCHI> slipped 0.7 percent.
 (Editing by David Cowell)