(ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report for more details)
* FTSEurofirst 300 down 0.8 pct
* SAP falls more than 2 pct
MILAN, April 11 (Reuters) - European shares were lower in early deals on Monday, led down by losses in SAP after a disappointing earnings update from the German software maker.
The pan-European FTSEurofirst 300 index was down 0.8 percent by 0717 GMT after gaining 1.2 percent in the previous session.
SAP fell more than 2 percent after the company warned that first-quarter results would be weaker than expected, while food company Nestle fell 3 percent as its shares went ex-dividend.
Shares in Daily Mail & General Trust were broadly flat after the Wall Street Journal reported that the parent company of the British Daily Mail newspaper was in talks with several private equity firms about a possible bid for Yahoo Inc .
But the Italian banking sector index was up 0.3 percent, outperforming the broader market on hopes the Italian government will soon thrash out a plan to set up a state-backed fund to buy bad loans and plug capital shortfall.
Today's European research round-up
ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.
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Mike Dolan, Markets Editor EMEA.
Reporting by Danilo Masoni; Editing by Sudip Kar-Gupta