U.S. jobs data drag European shares lower

* FTSEurofirst 300 index falls 0.6 percent

* Banks, miners reverse earlier gains after U.S. jobs data

* U.S. jobless rates jumps, payrolls barely rise

* For up-to-the minute market news, click on [STXNEWS/EU]

By Joanne Frearson

LONDON, Dec 3 (BestGrowthStock) – European shares fell on Friday as
hopes cooled that economic recovery was gaining pace after U.S.
job growth came in weaker than expected, with banks and miners
featuring among the worst performers.

By 1413 GMT, the pan-European FTSEurofirst 300 (.FTEU3: )
index of top shares was down 0.6 percent at 1,099.85 points,
after being up as much as 1,111.31.

U.S. nonfarm payrolls rose 39,000, with private hiring
gaining only 50,000, while the jobless rate jumped to 9.8
percent a seven-month high, the Labor Department said.

Economists had expected payrolls to increase 140,000 last
month and the unemployment rate to be unchanged at 9.6 percent.

“It is clearly disappointing and a surprise as most people
expected more. This demonstrates the U.S. economy remains
mixed,” Philippe Gijsels, head of research at BNP Paribas Fortis
Global Markets, in Brussels, said.

“Markets are reacting negatively and I would not be
surprised if equities remain down for the next couple of days.”

The banking sector, which is sensitive to changes in the
economic environment, slipped back from earlier gains.

The STOXX Europe 600 Banks (.SX7P: ) lost 1 percent, while
Barclays (BARC.L: ), Standard Chartered (STAN.L: ) and Societe
Generale (SOGN.PA: ) fell between 1.1 and 2.8 percent.

Miners also reversed earlier rises, tracking metal and crude
(CLc1: ) prices lower on the recovery worries. Xstrata (XTA.L: ),
BHP Billiton (BLT.L: ) and Rio Tinto (RIO.L: ) fell 1 to 1.8

Technology stocks were one of the few sectors which remained
in positive territory. STMicroelectronics (STM.PA: ) gained 4
percent after Exane upgraded the chipmaker to “outperform” from

Across Europe, the FTSE 100 (.FTSE: ) index was down 0.7
percent and Germany’s DAX (.GDAXI: ) and France’s CAC 40 (.FCHI: )
both fell 0.5 percent.
(Editing by David Holmes)

U.S. jobs data drag European shares lower