Europe shares mixed as RBS bounces, oils drop

European stocks were little changed at the open on Tuesday, as Royal Bank of Scotland (RBS.L) bounced back from steep losses the day before, but a hefty drop in crude prices hit oil shares.

At 0807 GMT the pan-European FTSEurofirst 300 index .FTEU3 was up 0.1 percent at 792.32 points. The index of top European shares dropped 1.6 percent on Monday.

Royal Bank of Scotland (RBS.L) added 14.7 percent after it plunged 67 percent the day before when it said it would report a massive 2008 loss.

Among oil shares, Royal Dutch Shell (RDSa.L), BP (BP.L) and Total (TOTF.PA) shed between 0.8 and 1.2 percent. Oil fell about $3 a barrel as more gloomy economic news emerged and gas supplies resumed from Russia.

"After yesterday's carnage, the smoke is still hanging over the market," said Justin Urquhart Stewart, director at Seven Investment Management.

"People talk about the nationalisation of the banks. That's almost beside the point, like interest rate cuts. What we have is the nationalisation of banking policy."

Europe's benchmark index, which tumbled 45 percent in 2008, is down nearly 5 percent so far this year.