* FTSEurofirst 300 pares gains after U.S. data, up 0.7 pct
* Financials, mining stocks among top gainers
* For up-to-the-minute market news, click on [STXNEWS/EU]
By Atul Prakash
LONDON, Aug 18 (Reuters) - European shares pared gains on Tuesday afternoon after data showing new U.S. housing starts and permits unexpectedly fell in July, pulled down by steeper declines in multi-family units.
At 1332 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.7 percent at 928.48 points after rising to a high of 932.65 earlier in the session.
The benchmark index, which has soared 44 percent since reaching a floor in March, tumbled 2 percent on Monday, falling along with stock markets around the world on concerns markets had gone ahead of the global economic recovery.
"The housing data summarises the uncertainty that still surrounds the housing market," said an analyst in London.
"The market is likely to remain volatile and the volatility is being added to by the traditional August holiday season. The market is expected to trade sideways for the next two to three weeks, with a downward bias," he added.
Financial stocks remained the top gainers in Europe, with
Standard Chartered
Swedbank
Miners gained ground, with Rio Tinto
Anglo American
Data also showed that U.S. producer prices also fell by larger-than expected amount in July and notched a record decline compared with a year ago as gasoline prices plummeted. [ID:nN13PI1]
Across Europe, Britain's FTSE 100 index <.FTSE>, Germany's DAX <.GDAXI> and France's CAC 40 <.FCHI> rose 0.2 to 0.4 percent. (Editing by Hans Peters)