* FTSE down 0.3 percent, volumes light
* Banks knocked on Greece debt restructuring reports
* Miners flag as China hikes reserve requirements
By David Brett
LONDON, April 18 (Reuters) - Britain's top share index fell early on Monday, as euro zone debt concerns and inflationary pressures from emerging markets dented sentiment for riskier assets such as banks and commodities.
"Now that the concerns around the Japanese economy are starting to subside, it brings the euro sovereign debt crisis squarely back in focus," said Richard Hunter, head of equities at Hargreaves Lansdown.
Euro zone debt concerns weighed on banks, pulling Barclays and Royal Bank of Scotland 1.6 and 1.2 percent lower.
Greek bond yields continued to rise as concerns grew that Greece will eventually need to restructure its debt, while Moody's cut its debt ratings on Irish banks.
Spanish and Portuguese bond yields widened on the news by 10 and 8 basis points, respectively.
By 0801 GMT, the FTSE 100 was down 19.87 points, or 0.3 percent, at 5,976.14, having closed up 0.5 percent at 5,996.01 on Friday.
Volumes were light, with the FTSE having traded just 8.3 percent of its average 90-day volume in the first hour.
Hargreaves Lansdown's Hunter said he expected volumes to remain depressed, with the Easter public holidays in the UK on Friday and next Monday, adding to volatility.
In a global strategy note, analysts at Nomura said they expected some consolidation in equities markets after a strong run that saw the FTSE gain 5 percent in the last month.
"Although the bull market will remain intact, the market may be due a period of reassessment before the uptrend can continue," they said.
"The fundamental valuation case for the market is still supportive. However, investor sentiment is bullish. At these levels in the past, this has indicated a pause in market uptrends."
INFLATION WORRIES
Commodity stocks remained subdued as inflationary pressures weighed on risk appetite.
On Sunday, China raised banks' reserve requirements for the fourth time this year, to keep its overheating economy in check.
The IMF has warned inflationary pressures in emerging markets could spread to developed countries.
Inflation accelerated in Asia and Europe in March, while the United States bucked the global trend with underlying price pressures largely in check, leaving monetary policy on diverging paths around the world.
Miner Eurasian Natural Resources fell 1.4 percent, while London-based oil and gas group BG Group shed 0.6 percent.
U.S. Brent crude slipped below $123 as fears that high prices would damp demand overrode concerns over a cut in oil output from top oil exporter Saudi Arabia.
British orthopaedics company Smith & Nephew fell 3.7 percent after Swiss medical device maker Synthes said it was in merger talks with Johnson & Johnson, which poured cold water on speculation that J&J was targeting the British firm.
On the upside, Europe's biggest home improvement retailer Kingfisher climbed 1.8 percent, with traders citing an upgrade by Bank of America Merrill Lynch as a major catalyst.
ITV, whose shares have been hit by concerns over its 2011 advertising revenues, added 1.8 percent as Jeffries upgraded its recommendation to "hold" from "underperform".
ITV's shares have traded below their 20-day moving average since March 14, with their 14-day relative strength index at around 35, close to the 30 point oversold level. (Editing by Will Waterman)