U.S. data pushes European shares to close higher

* FTSEurofirst 300 index up 0.4 pct

* Commodities track higher crude, metal prices

* Banks rebound; RBS slumps

By Joanne Frearson

LONDON, Nov 2 (Reuters) - European shares closed higher on Monday, boosted by better-than-expected U.S. manufacturing and pending home sales data, with commodities and banks the major gainers.

The pan-European FTSEurofirst 300 .FTEU3 index of top shares closed up 0.4 to 980.28 points, having earlier been as low as 968.19 points.

The benchmark index is up more than 51 percent from its lifetime low of March 9, as investors have become more confident on the prospects for economic recovery.

"It has been an amazing turnaround. The ISM (U.S. Institute for Supply Management) was a very good strong figure," said Mike Lenhoff, strategist at Brewin Dolphin. "Economic numbers are surpassing expectations. Today is a jubilant reaction to the news flow which is very supportive."

Markets rebounded after data showed U.S. manufacturing sector grew in October for the third consecutive month and pending sales of previously owned U.S. homes unexpectedly rose in September. [ID:nN02309157] [ID:nN02432431]