European shares fall as banks drop, oil prices resume slide
* FTSEurofirst falls back after Friday's rally
* Rebound in oil price fizzles out
* Greek shares outperform after S&P upgrade
* Spanish, Italian lenders weigh on banks (Adds closing prices.)
By Sudip Kar-Gupta and Danilo Masoni
LONDON/MILAN, Jan 25 (Reuters) - European shares fell on Monday as Spanish and Italian banks led a decline by banking shares and oil and gas companies lost ground when an oil price rally fizzled out.
The pan-European FTSEurofirst 300 index < .FTEU3>, which rose 3 percent on Friday to mark its first weekly gain for 2016, ended down 0.7 percent. The index is now down around 8 percent since the start of 2016.
The euro zone's blue-chip Euro STOXX 50 index < .STOXX50E> and Germany's DAX were down 0.7 and 0.3 percent respectively. The DAX is more than 20 percent below the record high it reached last April.
European bank shares declined the most, falling 3 percent. Italian banks were hit by continued uncertainty over how to deal with their bad loans. Spanish banks were under pressure as Spain struggled to form a new government after inconclusive elections last year. Continuación...