LONDON, July 5 European shares fell on Friday
after a stronger than expected U.S. jobs report saw investors
take money out of European stocks in expectation that the U.S.
Federal Reserve may soon start to slow its stimulus programme.
Sectors sensitive to changes in economic sentiment led the
market lower, with the basic resources sector down 4.1
The pan-European FTSEurofirst 300 provisionally
closed down 1.2 percent at 1,165.44, after non-farm payrolls
beat expectations by 30,000 jobs, raising the prospect of an
early end to the U.S. central bank's asset-buying programme.
Two weeks ago, Fed Chairman Ben Bernanke said it expected to
start cutting back later this year on the $85 billion in bonds
it is purchasing each month if data remained encouraging.
The stimulus provided by central banks had fuelled stock
markets to multi-year highs as recently as May, although the
prospect of its withdrawal in the United States has seen the
FTSEurofirst lose 7.5 percent since then.
"I still think good is bad and that view will continue until
there is a definitive plan from Ben," Ed Woolfitt,
head of trading at Galvan, said, adding that the data supported
the argument for slowing the stimulus programme.