European shares hit 2-mth closing low on debt woes

LONDON May 4 (Reuters) - European shares fell to a two-month closing low on Tuesday, as investors' confidence was rattled by growing concerns that a massive bailout for Greece may be insufficient in preventing a wider euro zone debt crisis.

The pan-European FTSEurofirst 300 .FTEU3 provisionally closed 3 percent lower at 1,033.18 points, its lowest closing level since early March.

The index crossed into negative territory for the year, down 1.2 percent. It rose nearly 26 percent in 2009.

"The agreement with Greece in principle is good but it is going to impose a huge amount of hardship and it is not clear whether it will actually contain the contagion which has been spreading as a result," said Mike Lenhoff, chief strategist at Brewin Dolphin.

Banks were among the biggest fallers, with Barclays (BARC.L), HSBC (HSBA.L), Societe Generale (SOGN.PA), BNP Paribas (BNPP.PA) and Deutsche Bank (DBKGn.DE) down 1.8 to 5.9 percent.

Spain's Banco Santander (SAN.MC) shed 7.1 percent and BBVA (BBVA.MC) dropped 7.6 percent, while Greek banking stocks .FTATBNK fell 10.3 percent. (Reporting by Harpreet Bhal)