LONDON, Dec 2 (Reuters) - European shares got off to a shaky start on Tuesday, falling 1.2 percent to add to a slump in the previous session as nervous investors digested news of more global central bank action to rescue weakening economies.
At 0807 GMT, the FTSEurofirst 300 index .FTEU3 index of top European shares was down 1.2 percent at 800.03 points, adding to Monday's 6 percent fall.
Banks and oils took the most points off the index on Tuesday.
HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz) was the top weighted loser, falling 2 percent, while Banco Santander (SAN.MC: Quote, Profile, Research, Stock Buzz) lost 3.5 percent and BNP Paribas (BNPP.PA: Quote, Profile, Research, Stock Buzz) fell 3.8 percent.
Oil CLc1 fell nearly 3 percent to trade below $48 a barrel, sending stock in BP (BP.L: Quote, Profile, Research, Stock Buzz) down 1.4 percent, BG (BG.L: Quote, Profile, Research, Stock Buzz) down 4.2 percent and StatoilHydro (STL.OL: Quote, Profile, Research, Stock Buzz) down 3 percent.
Analysts said tough times lay ahead.
"Equities will have a rough ride in the start of December, and this will continue until we see a ray of hope on the macro side," said Franz Wenzel, strategist at AXA Investment Managers in Paris.
"There's no help from valuations in this environment, and I don't expect a year-end rally -- I believe we saw one in the last two weeks but that is melting like the snow in the sun," he said.
Underlining a rough macro environment, the Reserve Bank of Australia cut its cash rate by 100 basis points and the Bank of Japan moved to ease an acute cash crunch for companies.
The European Central Bank and the Bank of England are due to announce rate decisions on Thursday.
Wenzel said he expected the ECB to cut by 75 basis points, or even 100.
"I wouldn't be surprised if they went for 100 basis points to signal a red alert, and that would provide a ray of hope," he said.
Benchmark U.S. Treasury yields traded near five-decade lows. (Reporting by Sitaraman Shankar)
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