* FTSEurofirst 300 down 0.7 percent
* Traders cautious ahead of U.S. Federal Reserve statement
* For up-to-the-minute market news, click on []
By Brian Gorman
LONDON, Aug 10 (Reuters) - European shares fell in early
trade on Tuesday with miners sliding on weaker metals prices as
the dollar strengthened ahead of a meeting of the U.S. Federal
Reserve, which may signal further stimulus measures.
Weaker-than-expected Chinese import data also hurt metals
prices.
The FTSEurofirst 300 <> index of top European shares
was down 0.7 percent at 1,064.25 points at 0843 GMT, after
rising 1.4 percent on Monday to its highest close since April
26.
The European benchmark index, helped by stimulus measures
worldwide, is up 64 percent from a lifetime low on March 9,
2009.
The Euro STOXX 50 <>, the euro zone's blue-chip
index, fell 0.6 percent. Earlier in the session, it fell back
below the 61.8 percent Fibonacci retracement of its fall to a
May low from an April high.
Miners to fall included BHP Billiton <BLT.L>, Kazakhmys
<KAZ.L>, Rio Tinto <RIO.L> and Xstrata <XTA.L>, down 2.4-2.8
percent.
Chinese imports posted a surprising decline in apparent
response to a government drive to rein in property speculation
and root out obsolete manufacturing capacity. []
The U.S. Fed meets on Tuesday, after the close of European
markets, to consider, and may adopt additional measures to prop
up a softening U.S. economic recovery.
With U.S. interest rates effectively at zero, the central
bank is out of easy policy options. Top Fed officials argue,
however, they can do more to fight renewed economic weakness,
including reinvesting proceeds from maturing mortgage bonds back
into that market. []
"The market expects a significantly dovish statement from
the Fed. We have priced in a concrete signal," Lang & Schwarz
strategist Giuseppe-Guido Amato said. "If we don't get this,
there will be selling pressure in the United States and then
tomorrow in Europe".
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC40 <> fell 0.3-0.7 percent.
In a broad-based market decline, the heavyweight banking
sector, a strong performer in recent weeks, was lower. BNP
Paribas <BNPP.PA>, Credit Agricole <CAGR.PA> and Lloyds <LLOY.L>
fell 1.4-1.9 percent.
The euro <EUR=> was lower, having hit a three-month peak
against the dollar on Friday.
With crude prices also hurt by the stronger dollar, most
energy companies were lower. Total <TOTF.PA>, Repsol <REP.MC>
and StatoilHydro <STL.OL> fell 1.1-1.2 percent.
CAIRN RISES
But oil explorer Cairn Energy <CNE.L> rose 3.3 percent after
the Daily Mail reported the Edinburgh-based company had received
a takeover approach valuing it at 9.8 billion pounds.
Among other companies, GDF Suez <GSZ.PA> rose 1.8 percent
after saying it was offering International Power <IPR.L>
shareholders a cash sweetener of 1.4 billion pounds as part of a
deal to create the world's largest independent power producer in
terms of revenue.
The announcement came as the two reported forecast-beating
first-half results. International Power fell 1.8 percent.
TUI Travel <TT.L>, Europe's biggest travel company, fell 8.3
percent after saying it expected full-year profit to be at the
lower end of expectations after trading was hit by uncertainty
among British consumers following June's emergency budget.
Hannover Re <HNRGn.DE> fell 2.4 percent after it reported a
fall in profit.
(Editing by Dan Lalor)
