* FTSEurofirst 300 down 1 percent, heading for weekly fall
* Two biggest Spanish banks fall, down 20 pct in a month * Miners down on China worries
* For up-to-the-minute market news, click on [STXNEWS/EU]
By Brian Gorman
LONDON, Nov 26 (Reuters) - European shares fell early on Friday with banks lower as euro zone sovereign debt worries intensified after a report that Portugal had come under pressure to accept a bailout. At 1000 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was down 1 percent at 1,081.47 points.
The index rose 0.5 percent in the previous session, but trading was subdued because Wall Street was closed for the Thanksgiving Day Holiday. U.S. markets will open for half a day on Friday.
The European benchmark, on track to fall 1.9 percent over the week, was up 67 percent from its lifetime low in March 2009.
"It is amazing how resilient markets have been considering the financial explosions we have had in Europe and the gunfire in Korea," said Justin Urquhart Stewart, director at Seven Investment Management.
"The market is still trying to find where it goes next. A lot of people may well be saying 'I will take my profits and square the books'."
A majority of the 16 euro zone nations and the European Central Bank are urging Portugal to apply for a financial bailout from a European rescue fund, Financial Times Deutschland said on Friday.
Without revealing its sources, the paper said a majority of euro zone countries and the European Central Bank were putting pressure on Portugal to follow Ireland and Greece and seek aid in order to save Spain -- European Union's fifth-largest economy -- from having to do the same. [ID:nLDE6AP08Y]
The premium investors demand to hold Spanish government bonds rather than benchmark German debt hit a new euro-lifetime high on Friday, as worsening investor sentiment continued to spread to the larger peripheral states. [ID:nLDE6AP0H8]
Spanish banking heavyweights Banco Santander
Analysts say concerns that Portugal might be next for a bailout have weighed even more heavily on Spanish banks than the Irish crisis. Spanish banks had more than $100 billion exposure to Portugal at the end of the fourth quarter 2009, according to June 2010 BIS Quarterly Review.
Other financials under pressure included British insurer
Aviva
Miners fell in response to weaker metals prices, which reflected worries that top metals consumer China will move to rein in lending in its fight against inflation, hurting demand.
Anglo American
BT RISES
On the upside, BT
The shares were further helped by Exane raising its price target. Across Europe, Britain's FTSE 100 <.FTSE>, Germany's DAX <.GDAXI> and France's CAC40 <.FCHI> fell between 0.7 and 1.4 percent. Spain's IBEX <.IBEX> fell 2 percent.
The Thomson Reuters Peripheral Eurozone Countries Index <.TRXFLDPIPU> fell 2.7 percent.
(Editing by Jane Merriman)