European shares fall, led by oil, banks, miners

* FTSEurofirst 300 index down 1.1 percent

* Economic growth worries weigh on bank and commodity shares

* Defensives gain; pharma group Roche up 2.3 percent

By Peter Starck

FRANKFURT, July 6 (Reuters) - European shares fell for the third straight session on Monday on renewed worries about the sustainability of economic recovery foreseen in recent sentiment surveys on both sides of the Atlantic and in China.

Oil & gas stocks .SXEP, banks .SX7P and basic resources .SXPP took the most points off the FTSEurofirst 300 index .FTEU3 of top European shares, which fell 1.1 percent to 833.03 points -- its lowest close since May 13.

Those investors who stayed loyal to equities rotated positions into traditional safe havens such as pharmaceuticals .SXDP, telecoms .SXKP and food and beverages .SX3P.

The benchmark index, which lost as much as 2 percent early in the European day before Wall Street opened after the long Independence Day weekend, is up 29 percent from the all-time low set on March 9.

That rally was driven primarily by an improvement in economic sentiment indicators.

"The market has priced in a lot. Now it remains to be seen whether things turn out that way," said Joerg Treptow, a trader at M.M. Warburg.

Among Europe's oil majors, ENI (ENI.MI) fell 2.7 percent, BP (BP.L) declined 2.6 percent and Royal Dutch Shell (RDSa.L) lost 2.1 percent as the crude price CLc1 gave up more than 3.5 percent to trade below $65 a barrel. [ID:nSYD537953]

Shares in miner Rio Tinto (RIO.L) fell 7 percent and steelmaker ArcelorMittal (ISPA.AS) dropped 4.7 percent. The DJ Stoxx basic resources index .SXPP shed 5.2 percent.

Copper MCU3 fell more than 3 percent to a two-week low as the dollar strengthened and investors fretted over how long it would take major economies to overcome recession, allowing demand to recover. [ID:nL6128364]

Among financials, ING Group (ING.AS) tumbled 4.5 percent, Deutsche Bank (DBKGn.DE) fell 3.2 percent, AXA (AXAF.PA) lost 3 percent, UniCredit (CRDI.MI) closed 2.9 percent lower and Royal Bank of Scotland (RBS.L) also was down 2.9 percent.

But reinsurer Paris Re (PRI.PA) surged 14.5 percent on news that Bermuda-based reinsurer PartnerRe (PRE.N) would acquire it in a $2 billion deal. [ID:nN05206325]

Pharma group Roche (ROG.VX) gained 2.3 percent, in telecoms Vodafone (VOD.L) added 1.7 percent, and in the food and beverages sector British American Tobacco (BATS.L) rose 1.8 percent.