* 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, Barclays, Credit Suisse, HSBC, UBS and UniCredit 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, reported last week to be a bid target, fell 3.3 percent, ahead of results on Tuesday.
AVIVA BUCKS TREND
Insurers were also mostly lower, including France's Axa and Germany's Allianz, down 2.4 and 2.7 percent respectively.
Aviva 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 and Vodafone 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 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 slip more than 2.5 percent to less than $66 a barrel. Metals prices also fell.
Miners Anglo American, Antofagasta, BHP Billiton, Lonmin, Rio Tinto, Vedanta Resources , Xstrata fell between 3.2 and 5.6 percent.
Energy companies to fall included BP, Royal Dutch Shell, Repsol, Total and StatoilHydro, down between 1 and 2.5 percent.
Volkswagen ordinary shares 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 rose 3.1 percent. (Additional reporting by Atul Prakash; Editing by Rupert Winchester)