European shares fall in early trade, led by oils

LONDON, Nov 26 (Reuters) - European shares fell in early trade on Wednesday, snapping a two-day gain, with oils the biggest casualties.

At 0808 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 1.2 percent at 823.16 points.

The index rose 0.6 percent on Tuesday, and 8.9 percent on Monday but has lost more than 44 percent this year, hurt by a credit crisis and economic slowdown.

"The Fed's move (to encourage lending) was taken low-key by the market," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin. "You can't force banks to lend if they don't want to. Earnings worries are still there. Markets are waiting to see a deceleration of the rate of economic decline. If there are signs of stability, we could have a rally." Crude prices CLc1 slipped 0.6 percent to $50.48 a a barrel. Total (TOTF.PA: Quote, Profile, Research, Stock Buzz), ENI (ENI.MI: Quote, Profile, Research, Stock Buzz), BP (BP.L: Quote, Profile, Research, Stock Buzz), Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz), and BG (BG.L: Quote, Profile, Research, Stock Buzz) fell between 1.5 and 2.5 percent.

Across Europe, Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC-40 .FCHI were down 1.2 to 1.7 percent. (Reporting by Brian Gorman)