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European shares fall on euro zone debt worries

Published 01/07/2011, 11:39 AM
Updated 01/07/2011, 11:44 AM

LONDON, Jan 7 (Reuters) - European stocks fell slightly on Friday, as worries about the euro zone intensified ahead of debt auctions next week and U.S. data showed far fewer jobs were created in December than forecast.

The FTSEurofirst 300 index of top European shares fell 0.2 percent to a provisional close of 1,144.58 points. Over the week, the index gained 2 percent.

The euro zone debt crisis "will surface as an investor concern this quarter," said Colin McLean, managing director at SVM Asset Management in Edinburgh. "Portugal will have to access the stability fund."

But interpretations of U.S. labour data varied, with the unemployment rate falling. The data had "confounded the biggest pessimists," said McLean. "If you're looking for the unemployment rate to drop sharply, it was quite encouraging."

Portugal, Spain and Italy are scheduled to hold their first bond auctions of the year next week.

Banks to fall included BNP Paribas, Banco Santander, BBVA and Societe Generale, down between 2.1 and 2.7 percent. (Reporting by Brian Gorman)

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