* FTSEurofirst 300 falls 0.4 percent
* Deutsche Bank drags banks down on capital raising
* Nokia up on new CEO
* For up-to-the-minute market news, click on
By Brian Gorman
LONDON, Sept 10 (Reuters) - European shares fell early on Friday as reports that Deutsche Bank plans to raise capital sparked worries about the whole banking sector, while Nokia rose after replacing its chief executive.
At 0837 GMT, the FTSEurofirst 300 index of top European shares was down 0.4 percent at 1,078.06 points after rising 1 percent in the previous session to a four-month closing high.
Deutsche Bank fell 4.9 percent after sources said it is considering a capital increase of up to 9 billion euros ($11.43 billion) to bolster its balance sheet as Basel capital requirements are finalised.
Other banks to fall included Commerzbank, Credit Agricole and Societe Generale, down between 1.3 and 3.4 percent.
"Deutsche is the strongest and it's going first -- who's behind them?," said Philip Isherwood, equity strategist at Evolution Securities in London. "And there's the uncertainty ahead of the weekend and whether Basel III is ratified, and on what sort of time banks have to rebuild finances." ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic on European banks' capital raising:
http://r.reuters.com/cyw42p ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Mobile phone maker Nokia rose 5.6 percent after it hired Stephen Elop, the head of Microsoft's Business Division, to replace its chief executive.
Across Europe, Britain's FTSE 100, Germany's DAX and France's CAC40 fell between 0.2 and 0.5 percent.
UTILITIES FALL
Spain's Gas Natural fell 3.7 percent after French utility GDF Suez sold its entire 5.01 percent stake through a block trade for a total of 540 million euros ($685.1 million).
French utilities Suez Environnement and Veolia Environnement fell 3.2 and 3.1 percent respectively after being downgraded by BNP Paribas.
Novo Nordisk gained 2.1 percent after it said Britain's cost-effectiveness watchdog would back the Danish drugmaker's newest diabetes drug Victoza in 1.2 mg doses for the treatment of type 2 diabetes.
Stainless steel maker Outokumpu rose 2.6 percent after Morgan Stanley raised its rating, citing strong Chinese demand, low inventory levels and potential nickel price upside.
The European benchmark FTSEurofirst 300 is on course for a gain of more than 1 percent over the week, having risen 3.6 percent in the previous week. It is up barely 3 percent in 2010. "The valuations the market is trading at are amply discounting the risk of double dip (recession)," said Isherwood.
The Euro STOXX 50, the euro zone's blue-chip index, fell 0.3 percent to 2,766.11 points, still above its 50 percent Fibonacci retracement of a fall from an April high to a May low at 2,737.62 points.
(Graphic by Vincent Flasseur; Editing by Erica Billingham)