* FTSEurofirst 300 falls 1.3 percent
* Oils, miners down as commodity prices fall
* CRH plummets after profit warning
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By Brian Gorman
LONDON, Aug 24 (Reuters) - European shares fell to their lowest level in a month on Tuesday, tracking a decline on Wall Street, with commodity producers suffering on worries about the strength of the economic recovery.
At 0832 GMT, the FTSEurofirst 300 index of top European shares was down 1.3 percent at 1,022.73 points, having risen 0.7 percent in the previous session, boosted by M&A developments. The European benchmark soared 62 percent between hitting a lifetime low in March, 2009, and the end of the year. But the rally stalled on worries about European debt levels and the strength of the economic recovery, and the index is down 2.2 percent in 2010.
The downbeat outlook for the economy affected the demand prospects for producers of commodities, which were among the biggest losers on Tuesday.
Oil prices, further hit by higher than expected inventories and a stronger dollar, were near their lowest in seven weeks Total, ENI, Statoil and BP fell between 0.9 and 1.7 percent.
Cairn Energy fell 2.1 percent, as its first-half results included disappointing news about its drilling activities in Greenland.
Chilean miner Antofagasta fell 2.6 percent after trimming its annual production target, as it posted an expected near doubling in first-half earnings per share on higher production and a rebound in prices.
Elsewhere in the sector, Vedanta Resources fell 5.3 percent, after India's environment ministry rejected a plan by the mining group to mine bauxite in an eastern state.
"Obviously you've also got the uncertainty about whether or not the Indian government will give the go-ahead to acquire Cairn India," a trader said.
Other miners to fall, as the price of copper and other metals weakened, included Kazakhmys, Lonmin and Xstrata, down between 2.2 and 4.1 percent. In a broad market decline, the heavyweight banking sector was also lower. Lloyds, Royal Bank of Scotland and UniCredit fell between 1.8 and 2.5 percent. Across Europe, Britain's FTSE 100, Germany's DAX and France's CAC40 fell between 0.9 and 1.3 percent.
Analysts said U.S. housing data, due at 1400 GMT, would be closely watched.
"If the U.S. housing data today is weak, that could take the market down," said Justin Urquhart Stewart, director at Seven Investment Management. "In light volumes, it's reacting to every bit of news, and the next economic news could be bad. M&A news has had a disproportionate effect."
CONSTRUCTION COMPANIES FALL
Shares in European cement and construction firms tumbled, hit by a profit warning from Ireland's CRH, which sent its stock down 14.4 percent.. It was also affected a downbeat note from BoA-Merrill Lynch on Lafarge, down 4.1 percent.
Elsewhere in the sector, HeidelbergCement was down 4.8 percent while Holcim fell 2.5 percent to a 52-week low, continuing falls from last week when it posted forecast-lagging results.
The Euro STOXX 50, the euro zone's blue-chip index, fell 1.5 percent to 2,621.07. The next key level is 2,584.75, the 23.6 percent Fibonacci retracement of its drop from an April high to a May low.
U.S. stocks slipped in one of the lightest volume sessions of the year on Monday as investors took refuge in defensive shares after the latest corporate M&A failed to soothe concerns the recovery is stalling.
A return to growth in consumer spending allied with buoyant exports helped spur Germany's economy to its fastest rate of expansion since reunification in the second quarter, official data confirmed on Tuesday. (Additional reporting by Dominic Lau; Editing by Simon Jessop)