* FTSEurofirst 300 falls 2 pct to lowest close since July 29
* Financials among top losers
* Energy, mining shares follow weaker commodity prices
By Brian Gorman
LONDON, Aug 17 (Reuters) - European shares fell to their
lowest close in more than two weeks on Monday, as investors took
profits, worrying that a recent rally was not supported by
economic data.
The FTSEurofirst 300 <> index of top European shares
fell 2 percent to 921.96 points, the lowest close since July 29.
The index posted its biggest one-day percentage drop since July
2.
The heavyweight banking sector took most points off the
index. Banco Santander <SAN.MC>, Barclays <BARC.L>, Credit
Suisse <CSGN.VX>, HSBC <HSBA.L>, UBS <UBSN.VX> and UniCredit
<CRDI.MI> fell between 1.9 and 3.8 percent.
"The market is too far ahead of the economy," said
Giuseppe-Guido Amato, strategist at Lang & Schwarz. "We are not
there (in recovery) yet. We have stopped the patient bleeding
but the cancer is still there."
"The only good thing is liquidity and the underinvestment of
institutions. There comes a point where they must invest," he
added.
But the benchmark index, which slumped 45 percent in 2008,
is still up 42.8 percent from its lifetime low of March 9.
Figures from Friday showing a further deterioration in U.S.
consumer confidence overshadowed two more upbeat reports on
Monday.
Japan became the third G7 country after Germany and France
to pull out of recession. []
A gauge of manufacturing in New York State moved into
positive territory in August, suggesting growth in the sector
for the first time since November 2007. The New York Federal
Reserve said the "Empire State" general business conditions
index rose to plus 12.08 from minus 0.55 in July. Economists
polled by Reuters had expected a figure of 3.00. []
British Land <BLND.L>, reported last week to be a bid
target, fell 3.3 percent, ahead of results on Tuesday.
AVIVA <AV.L> BUCKS TREND
Insurers were also mostly lower, including France's Axa
<AXAF.PA> and Germany's Allianz <ALVG.DE>, down 2.4 and 2.7
percent respectively.
Aviva <AV.L> bucked the trend, up 1.6 percent, after HSBC
upgraded it to "neutral", from "underweight" []
In an across-the-board sell-off, there were few other
gainers. Defensives such as drugs giant GlaxoSmithKline <GSK.L>
and Vodafone <VOD.L> were among the main risers, up 0.8 and 0.4
percent respectively.
Across Europe, UK's FTSE 100 index <> closed 1.5
percent lower; Germany's DAX <> and France's CAC 40
<> fell 2 and 2.2 percent respectively.
On Wall Street, The Dow Jones <>, S&P 500 <.SPX> and
Nasdaq Composite <> were down between 1.7 and 2.4 percent
around the time European bourses were closing.
"Signs of anaemia in the economic recovery are catalysing
some profit taking, but I don't think it is a matter of concern.
You can't just expect every single boat in the sea to be lifted
off by this rising tide," said Andrew Bell, head of research at
Rensburg Sheppards.
"We either needed to see a pause for breath because we are
not in an economic boom or perhaps we need to see a rotation
from the companies most exposed to the recovery story."
Worries about the worldwide economy saw crude oil <CLc1>
slip more than 2.5 percent to less than $66 a barrel. Metals
prices also fell.
Miners Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP
Billiton <BLT.L>, Lonmin <LMI.L>, Rio Tinto <RIO.L>, Vedanta
Resources <VED.L>, Xstrata <XTA.L> fell between 3.2 and 5.6
percent.
Energy companies to fall included BP <BP.L>, Royal Dutch
Shell <RDSa.AS>, Repsol <REP.MC>, Total <TOTF.PA> and
StatoilHydro <STL.OL>, down between 1 and 2.5 percent.
Volkswagen ordinary shares <VOWG.DE> fell 9.9 percent, with
traders pointing towards speculation that Porsche may own more
options in the automaker than the block controlling a 17 percent
VW stake that it agreed to sell to Qatar Holding LLC on Friday.
Porsche <PSHG_p.DE> rose 3.1 percent.
(Additional reporting by Atul Prakash; Editing by Rupert
Winchester)
