European shares steady; set for first weekly drop since April

EDINBURGH, June 27 Fri Jun 27, 2014 3:13am EDT

EDINBURGH, June 27 (Reuters) - European shares steadied on Friday, supported by gains in British engine maker Rolls-Royce but still set for its first weekly drop since April.

Rolls Royce gained 1.1 percent after Reuters exclusively reported that Airbus is close to a decision to upgrade its A330 with engines provided by the UK-listed company.

The pan-European FTSEurofirst 300 was flat at 1,370.08 by 0706 GMT, leaving it down 1.8 percent for the week.

The index looks set to snap a 10-week winning streak, which had been its longest since the middle of 2012.

The FTSEurofirst 300 closed down 0.1 percent at 1,370.38 on Thursday, retreating further from a 6-1/2 year high hit last week after U.S. Federal Reserve official James Bullard suggested the U.S. economy would be strong enough to bear a rate rise in early 2015.

The comments came despite weak U.S. consumer spending data, which prompted a cut in growth forecasts and hit global stocks. (Reporting by Alistair Smout; Editing by Atul Prakash)