* FTSEurofirst 300 ends at lowest since Feb. 25
* Peugeot announces strategy, leads auto shares lower
* ThyssenKrupp falls after Vale deal confirmed
* Italy lenders lead banking sector lower (ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development) Adds closing prices)
By Danilo Masoni and Alistair Smout
MILAN/LONDON, April 5 (Reuters) - European shares fell on Tuesday to touch their lowest level in almost six weeks, with mining, autos and bank stocks leading the decline after industrial orders in Germany unexpectedly dropped.
Industrial orders in Europe's biggest economy fell in February due to weaker foreign demand, suggesting a slowdown in the global economy was leaving its mark.
Other surveys found that French business activity had stagnated, German private-sector growth hit an eight-month low and Italian services grew at their slowest rate for over a year.
"Economies aren't in great shape," said Manulife Asset Management investment analyst Will Hamlyn.
"There's nervousness with the start of the quarter and there are a lot of concerns about growth."
Germany's DAX fell 2.6 percent, underperforming a 1.9 percent drop for the pan-European FTSEurofirst 300 to its lowest level since Feb. 25.
Exporters and other globally-exposed stocks were hit across the region, with autos down 3.9 percent and mining stocks down 3.7 percent.
The French carmaker Peugeot fell 6.5 percent after outlining plans to revive consistent sales growth. Traders said that, while the plan would be hard work, it could help to turn the firm around.
"The guidance, to increase and stabilise margins from a low base, will be tough but achievable," said Atif Latif, director of trading at Guardian Stockbrokers.
"The margin recovery story is in its infancy and we see the opportunity for this to be the key driver ... Overall, we remain positive."
Banks were also weaker with the sector index falling more than 3 percent with Italian lenders such as Banco Popolare and Monte dei Paschi leading the decline.
Shares in ThyssenKrupp dropped 4.7 percent, among the top fallers on the FTSEurofirst 300. It was down for a second day following confirmation that Brazilian miner Vale will sell its entire 27 percent stake in the struggling CSA steel plant to the German firm.
The firm had rallied last week on hopes that it could benefit from consolidation in the European steel industry. However, its shares have been under pressure since the weekend, when Reuters exclusively reported that Vale was finalising a deal.
Today's European research round-up
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Mike Dolan, Markets Editor EMEA. (Editing by Raissa Kasolowsky/Ruth Pitchford)