* Commodity issues sold off on recovery concerns

* Financials fall after slide by U.S. peers

* Bailed-out RBS, Lloyds diverge on government plans

By Jon Hopkins

LONDON, Nov 3 (Reuters) - Britain's top shares shed 1.3 pct in early deals on Tuesday reversing gains made in the previous session, led lower by weak banks, and commodity stocks in a broad-based sell-off with investors jittery on recovery uncertainties.

At 0916 GMT, the FTSE 100 .FTSE index was 65.30 points lower at 5,039.20 having gained 1.2 percent on Monday.

"Investors are understandably shunning the market with pronouncements due this week from the Federal Reserve, Bank of England, and ECB, and non-farm payrolls data due on Friday," said David Morrison, market strategist at GFT Global.

Banks stood out as Lloyds Banking Group (LLOY.L: Quote, Profile, Research) launched a record 13.5 billion pounds ($22 billion) rights issue and along with rival Royal Bank of Scotland (RBS.L: Quote, Profile, Research) agreed to sell off some businesses to limit their reliance on government support.