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Naturgy falls after Criteria drops takeover plan with TAQA

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Atos falls after it picks Layani's rescue bid

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Metal miners lead declines, STOXX 600 flat

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

By Shristi Achar A

June 11 (Reuters) - European shares were rangebound on

Tuesday following losses in the previous session on political

uncertainties in France, while investor attention turned to the

U.S. Federal Reserve's monetary policy meeting.

The continent-wide STOXX 600 was flat at 521.90 as

of 0834 GMT.

France's CAC 40 index gained 0.2%, rebounding from a

more than 1% decline on Monday, as President Emmanuel Macron

called for a snap election following a heavy trouncing of his

allies in European Union parliamentary elections.

The yield on the French 10-year bond, however,

hit its highest since November.

"Our view on European growth picture has improved, and we do

not think that the political uncertainty will change that view,"

Mohit Kumar, chief economist Europe at Jefferies, said in a

note.

The basic resources index led sectoral declines,

down 1.6% as base metal prices took a hit on a weaker yuan.

Adding to the sector's losses, Rio Tinto fell 2.2%

after the mining giant said it would buy Mitsubishi Corp's ( MSBHF )

11.65% stake in Boyne Smelters (BSL) for an undisclosed

sum.

London's FTSE 100 edged down 0.1% on miners'

weakness, even as the domestic labour market showed signs of

cooling in April.

The focus will now be on the Fed's policy decision on

Wednesday, which will help markets gauge the timing of interest

rate cuts in the world's largest economy.

Meanwhile, European Central Bank policymaker Francois

Villeroy de Galhau said the central bank will bring inflation

back to its 2% target by next year, despite expected "noise" in

the monthly data this year.

Among other stocks, Atos fell 11.1% as the French

tech group picked an offer to restructure its debt led by anchor

investor David Layani, which will massively dilute existing

shareholders' stake.

UCB

gained 3.3% after J.P.Morgan upgraded the Belgian

biopharmaceutical group to "neutral" from "underweight."

Naturgy's

shares fell 11.9% after Spanish holding firm

Criteria dropped its takeover plan with Abu Dhabi's TAQA

for the Spanish gas firm.

Spain's IBEX index was down 0.5% underperforming

the region's bourses.