Thursday July 2, 08:25 AM
Commods drag Europe stocks lower; await non-farm payrolls
LONDON, July 2 (Reuters) - European shares were lower in early trade on Thursday as investors took a cautious stance ahead of U.S. non-farm payroll figures, with commodities the biggest fallers tracking weakness in crude and metal prices.
By 0705 GMT, the pan-European FTSEurofirst 300 index of top shares fell 0.8 percent at 858.66 points after rising 1.8 percent in the previous session.
'The non-farm payrolls are probably not necessarily going to be good news. It is a lagging indicator so it is likely to continue to get worse before it gets better,' said Justin Urquhart Stewart.
Energy stocks were the biggest losers after crude hovered around $69 a barrel following falls in the previous session.
BG Group (LSE: BG.L - news) , BP, Royal Dutch Shell (Amsterdam: RDSA.AS - news) and Total were down 0.9-1.5 percent.
Miners were in the doldrums. Rio Tinto (LSE: RIO.L - news) slipped back 1.4 percent after its $15.2 billion rights offer.
Later in the session, investors are likely to focus on the U.S. Employment report for June due out at 1230 GMT. Economists in a Reuters survey forecast that 363,000 jobs were lost in the month compared with a loss of 345,000 jobs in May.
In Europe, the European Central Bank is expected to keep euro zone interest rates unchanged, while investors will keep a close eye on ECB President Jean-Claude Trichet's press conference at 1230 GMT.
(Reporting by Joanne Frearson) Keywords: MARKETS EUROPE STOCKS/OPEN
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