Miners lead European shares down; econ data bleak
* FTSEurofirst 300 index down 0.6 percent
* Basic resources, technology leading sectoral decliners
* Eyes on Bank of England, expected to cut rates
FRANKFURT, Jan 8 (Reuters) - European shares were down in early trade on Thursday, with heavyweight mining stocks taking most points off the index, after a record drop in German exports and weak U.S. jobless data rekindled economic worries.
At 0915 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was down 0.6 percent at 872.27 points, having ended a six-day winning streak on Wednesday by dropping 1.3 percent. The index lost 45 percent in 2008.
"Today is a typical day on which the bad macroeconomic sentiment drives down the whole market," said Joerg Rahn, senior economist at MM Warburg.
"U.S. jobless claims are likely to rise later today, which, after yesterday's weak figures, could negatively impact the market. A positive surprise would not boost the market today," he said. Weekly U.S. jobless data is due at 1330 GMT.
The bleak economic outlook hit shares in raw material producers such as steelmaker ArcelorMittal (MTP.PA) and mining groups Rio Tinto (RIO.L) and Anglo American (AAL.L), all of which fell around 3 percent.
The DJ Stoxx basic resources index .SXPP was the top sectoral loser, down just over 2 percent.
German exports posted a record fall in November as demand for cars and others mainstays of the manufacturing economy plummeted, deepening worries about the country's already bleak 2009 outlook. [ID:nL88871]
"Today's dramatic decline in exports supports those within the ECB council who prefer to cut rates already next Thursday by 50 basis points," said Commerzbank Chief Economist Joerg Kraemer, referring to the European Central Bank.
Shares in J. Sainsbury (SBRY.L), Britain's third-biggest supermarket group, were down 1.5 percent, after the company posted third-quarter underlying sales at the top end of forecasts but said economic conditions were set to remain "particularly challenging" in 2009. [ID:nL7558035]
Across Europe, the FTSE 100 index .FTSE, Germany's DAX .GDAXI and France's CAC 40 .FCHI were down between 0.2 and 0.8 percent.
FOCUS ON BANK OF ENGLAND
The market's focus later on Thursday will be on the Bank of England (BoE), which is expected to cut interest rates by 50 basis points to 1.50 percent. Its decision is due at 1200 GMT.
"Though we don't rule out a larger move, the BoE should cut the repo rate by 50 basis points today and keep additional ammunition for the coming months," UniCredit strategists wrote in a note.
German chipmaker Infineon (IFXGn.DE) dropped 5 percent after iSuppli said global sales of dynamic random access memory (DRAM) chips are expected to fall 4 percent in 2009, extending their decline for the third straight year amid a prolonged industry downturn and chronic oversupply. [ID:nSEO84566]
Royal Bank of Scotland (RBS.L) gained 3.5 percent after a newspaper report saying the bank is mulling a sale of its 4.3 percent stake in Bank of China (3988.HK) as part of a widespread review of its international assets. [ID:nL8184723]
Some strategists said 2009 looked likely to be volatile for stock markets.
"Equities look cheap in absolute terms and very cheap against defensive assets," Citigroup said.
"This battle between dire fundamentals and cheap valuations will be the defining theme of 2009. We think that neither will win out over the year, but it will be a volatile ride. This suggests trading-range markets," the U.S. bank added. (Additional reporting by Peter Starck; Editing by Hans Peters)
