CORRECTED - Euro cuts loss, rate futures trim gain on ECB cut

(Corrects level of new ECB refi rate in 1st paragraph to 2.5 pct from 2 pct)

LONDON, Dec 4 (Reuters) - The euro pared early losses, while euro zone rate futures trimmed gains after the European Central Bank opted to cut interest rates in the single currency zone by a bigger than expected 75 basis points to 2.5 percent.

By 1249 GMT, the euro stood at $1.2630 EURGBP=, cutting earlier losses but still down 0.7 percent on the day.

The FTSEurofirst 300 index of leading shares spiked briefly after the ECB rate cut, but quickly returned to levels lower than before the announcement. It was last trading up 0.5 percent at 833.95 points.

Euro zone interest rate futures trimmed gains and Bund futures turned negative after the ECB's rate decision disappointed markets.

"The ECB has been preceived as moving slower than other central banks, and so any move that is even slightly more aggressive is not a bad thing, which is why the euro has been fairly stable following the decision," said Adarsh Sinha, forex analyst at Barclays Capital in London.

Bund futures FGBLc1 fell to a session low of 123.39, having stood at 124.23 just before the ECB announcement.

Euribor futures <0#FEI:> halved earlier gains, having initially bounced higher after the decision.

(Reporting by London Treasury Team; Editing by Victoria Main)