Weaker UPM-Kymmene leads European shares lower

* Pan-European FTSEurofirst 300 index falls 0.6 pct

* UPM (Taiwan OTC: 4752.TWO - news) -Kymmene, Commerzbank (Xetra: CBK100 - news) and Geberit (Other OTC: GBERF - news) top fallers

* Greek share index outperforms, up 0.5 pct

By Atul Prakash

LONDON, April 28 (Reuters) - European equities fell on Tuesday following some weaker-than-expected updates, with paper maker UPM-Kymmene slipping after announcing results and Commerzbank's plan to raise 1.4 billion euros ($1.5 billion) hurting its shares.

Commerzbank dropped 4 percent after Germany's No.2 bank on Monday launched a share sale to raise money from institutional investors to bolster its capital.

Investors also traded cautiously ahead of the start of the Federal Reserve's two-day policy meeting on Tuesday. Analysts expect recent soft U.S. data will nudge the U.S. central bank towards a dovish stance on monetary policy. But investors will scrutinise statements for hints about the timing of a rate hike.

The FTSEurofirst 300 index of top European shares was down 0.6 percent at 1,632.16 points by 0815 GMT, after gaining about 1 percent in the previous session, dragged down by sharp moves on some individual companies.

"We have seen some mixed earnings reports today, however disappointing results from companies such as UPM-Kymmene have eclipsed some positive results," Christian Stocker, equity strategist at UniCredit (Milan: UCG.MI - news) in Munich, said.

"The broader stocks market's recent uptrend remains intact, but we need to see a further improvement in company earnings for the trend to remain firmly in place in the coming weeks."

UPM-Kymmene fell 5.9 percent, the top decliner in the FTSEurofirst 300 index, after its quarterly core profit missed market expectations.

Geberit, which makes toilet flushing systems, dropped 5.4 percent after reporting a 15 percent fall in first-quarter net profit.

However, oil major BP bucked the trend and rose 1.2 percent after reporting higher than expected profit following a hefty increase in refining revenues that offset weak earnings from its oil production division. It also maintained its dividend at 10 cents per share.

"BP is moving into something of a holding pattern, as it positions itself for a potentially prolonged period of lower oil prices," Richard Hunter, head of equities at Hargreaves Lansdown, said.

"The company has reiterated its protective nature regarding the dividend, where a yield of 5 percent is a key attraction given the current interest rate backdrop."

Across Europe, Britain's FTSE 100 fell 0.8 percent, Germany's DAX dropped 0.5 percent and France's CAC was down 0.8 percent.

However, Greece's ATG index extended the previous session's gains of 4.4 percent and was last up 0.5 percent after Greek Prime Minister Alexis Tsipras on Monday reshuffled his team handling talks with European and IMF lenders. ID:nA8N0XO003]

($1 = 0.9188 euros) (Editing by Mark Potter)