European shares were lower in early trade today as investors took a cautious stance ahead of US non-farm payroll figures, with commodities the biggest fallers tracking weakness in crude and metal prices.
By 0705 GMT, the pan-European FTSEurofirst 300 .FTEU3 index of top shares fell 0.8 per cent at 858.66 points after rising 1.8 per cent in the previous session.
Energy stocks were the biggest losers after crude CLc1 hovered around $69 a barrel following falls in the previous session.
BG Group, BP, Royal Dutch Shell and Total were down 0.9-1.5 per cent.
Miners were in the doldrums. Rio Tinto slipped back 1.4 per cent after its $15.2 billion rights offer.
Later in the session, investors are likely to focus on the US 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 Japan, the Nikkei average fell 0.6 per cent, dented by a fall in blue-chip shares as caution set in ahead of the US jobs data, but Hitachi jumped on a report it will boost production of lithium ion batteries for hybrid cars.
Market analysts said the Nikkei was due for a pause after recovering some 40 per cent from its March lows, though the mood remained upbeat, reinforced by reassuring manufacturing data from Europe, China and the United States.
Reuters