* FTSEurofirst 300 index ends up 0.1 pct
* ARM jumps after Intel-Infineon deal
* U.S. consumer confidence data supports
By Joanne Frearson
LONDON, Aug 31 (Reuters) - European shares edged higher on Tuesday, helped by a rise in U.S. consumer confidence data, though gains were limited by fears for economic recovery, with the market recording its worst monthly decline since May.
Merger and acquisition news also helped support the market.
ARM
The pan-European FTSEurofirst 300 <.FTEU3> index of top shares closed up 0.1 percent at 1,026.34 points, down around 1.7 percent for the month.
The Euro STOXX 50 <.STOXX50E> was 0.2 percent higher at 2,622.95, just above a key support level, the 23.6 percent retracement of a fall from an April high to a May low.
"Markets responded to the better-than-expected U.S. consumer confidence, but the markets have not made their mind up about the recovery," said Mike Lenhoff, chief strategist at Brewin Dolphin. "There are still worries about a double-dip recession."
The market pared losses after U.S. consumer confidence rose modestly in August.
Dutch chip equipment maker ASML
SERCO SLIPS
British outsourcing company Serco Plc
"If you look at all the noise, all the volatility and all the nervousness, it is clear that this market has one major fear at the moment, and that is the double dip," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets.
"And we are not going to have the answer to that one until the fourth quarter. There is more downside risk for equities over the next couple of weeks."
However, mining stocks reversed losses as the U.S. consumer
data helped copper
Anglo American
Across Europe, the FTSE 100 <.FTSE> index was 0.5 percent higher, Germany's DAX <.GDAXI> was up 0.2 percent, and France's CAC 40 <.FCHI> was 0.1 percent higher. (Additional reporting by Atul Prakash; Editing by Will Waterman)