* FTSEurofirst 300 index falls 0.5 pct * Banks, autos weigh on index * Energy stocks benefit from higher oil prices By Brian Gorman LONDON, Dec 11 (Reuters) - European shares were down at midday on Thursday, driven lower by financial shares on renewed fears of global economic weakness, and by autos stocks on uncertainties over the proposed U.S. bailout package. Falls, however, were offset by oil stocks, which tiptoed higher on stronger crude prices. At 1202 GMT, the pan-European FTSEurofirst 300 .FTEU3 index was down 0.5 percent at 855.68 points, snapping a three-session winning run. The index has lost more than 42 percent this year, battered by the credit crisis, which has helped push several major economies into recession. Crude oil futures rose more than 5 percent to $45.74 a barrel, after the International Energy Agency predicted global demand would grow in 2009 and on expectations OPEC would cut supplies at a meeting next week. Heavyweight energy stocks were outstanding gainers. Total (TOTF.PA: Quote, Profile, Research, Stock Buzz), BP (BP.L: Quote, Profile, Research, Stock Buzz), Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz) and Statoil (STL.OL: Quote, Profile, Research, Stock Buzz) rose between 1.4 percent and 5.3 percent. Tullow Oil (TLW.L: Quote, Profile, Research, Stock Buzz) surged 15.4 percent, boosted by its announcement on new oil finds in Ghana and Uganda. "I think the commodities sectors are making sense, from the point of view of valuations, with miners down to four times (earnings) and oils down to six," said Philip Isherwood, strategist at Dresdner Kleinwort. "The industry is waking up to Rio's announcement, and rediscovering self-discipline. We've moved up to 'overweight' on commodities." Isherwood said the "problem with the policy initiatives is that the response is proportionate to the economic problems. You're getting a lot because you've got a lot of problems." The U.S. House of Representatives approved a rescue plan legislation on Wednesday to help embattled U.S. automakers, but the plan has to be approved by the Senate where prospects for passage appeared grim. BMW (BMWG.DE: Quote, Profile, Research, Stock Buzz), Peugeot (PEUP.PA: Quote, Profile, Research, Stock Buzz) and Fiat (FIA.MI: Quote, Profile, Research, Stock Buzz) were down between 1.7 percent and 3.2 percent. Futures for the Dow Jones DJc1, S&P S&Pc1 and Nasdaq NDc1 were between 0.1 percent and 0.5 percent higher. Among banks, BNP Paribas (BNPP.PA: Quote, Profile, Research, Stock Buzz), Banco Santander (SAN.MC: Quote, Profile, Research, Stock Buzz), HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz) and UBS (UBSN.VX: Quote, Profile, Research, Stock Buzz) were down between 0.9 percent and 1.9 percent. Fortis (FOR.BR: Quote, Profile, Research, Stock Buzz) soared 20 percent after reports the Belgian government no longer rules out handing its 11.6 percent stake in French bank BNP Paribas (BNPP.PA: Quote, Profile, Research, Stock Buzz) to Fortis. BNP Paribas declined to comment, while no one at Fortis (FOR.BR: Quote, Profile, Research, Stock Buzz) could immediately comment. Insurer Standard Life ST.L fell 4.9 percent. AstraZeneca (AZN.L: Quote, Profile, Research, Stock Buzz) fell 1 percent after dropping two experimental cancer treatment drugs. Other pharmaceutical stocks continued declines from yesterday, including GlaxoSmithKline (GSK.L: Quote, Profile, Research, Stock Buzz), which fell 1.3 percent. INDEX RESHUFFLE Belgian supermarket group Delhaize (DELB.BR: Quote, Profile, Research, Stock Buzz) was up 1 percent on news it was one of 17 companies being promoted to the FTSEurofirst 300. Others promoted include Ryanair (RYA.I: Quote, Profile, Research, Stock Buzz), up 0.3 percent. All three Irish banks in the index -- Allied Irish Banks (ALBK.I: Quote, Profile, Research, Stock Buzz), Anglo Irish (ANGL.I: Quote, Profile, Research, Stock Buzz) and Bank of Ireland (BKIR.I: Quote, Profile, Research, Stock Buzz) will be ejected. The index changes will take effect from Dec. 22. However, the Irish banks were mixed, with Anglo Irish Banks up 16.7 percent. Negative corporate news weighed on the market, especially on retailers. Finland's top magazine paper maker UPM-Kymmene Oyj (UPM1V.HE: Quote, Profile, Research, Stock Buzz) said its fourth-quarter operating profit is expected to be less than the same quarter a year ago after sales slowed more than expected. Shares in UPM were down 9.9 percent. Within the sector, Stora Enso (STERV.HE: Quote, Profile, Research, Stock Buzz) shed 7.6 percent Shares in Zara fashion store owner Inditex (ITX.MC: Quote, Profile, Research, Stock Buzz) rose 4.9 percent despite the company's nine-month net profit missing estimates. Across Europe, the FTSE 100 .FTSE index was up 0.5 percent, the German DAX .GDAXI index was down 0.3 percent and France's CAC .FCHI index was down 0.2 percent. (Additional reporting by Christoph Steitz and Sarah Marsh in Frankfurt; Editing by Andrew Macdonald)

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