* FTSEurofirst 300 down 0.4 pct, Euro STOXX 50 down 0.4 pct
* Stocks with big exposure to Russia under renewed pressure
* Low expectations for U.S. monthly jobs data
* Rise in DAX puts as German index seen most vulnerable
* U.S. investors continue to pour money into Europe -Lipper
By Blaise Robinson
PARIS, March 7 European shares slipped in early
trade on Friday as investors trod a cautious path in case of
another escalation in tensions between Russia and Ukraine over
Shares of companies most exposed to Russia such as Finnish
tyre maker Nokian Renkaat, Danish brewer Carlsberg
and Austrian lender Raiffeisen Bank International
were among the biggest losers.
Investors also avoided taking fresh bets ahead of U.S. jobs
data due later in the day that will provide insight on the state
of the world's biggest economy and could influence the Federal
Reserve's policy outlook.
At 1050 GMT, the FTSEurofirst 300 index of top
European shares was down 0.4 percent at 1,338.54 points. After
taking a hit on Monday, the index reversed most of the sell-off
that was sparked by an escalation in tensions between Ukraine
and Russia, but failed to resume its recovery rally on Friday.
"Stocks have been yo-yoing this week, and indexes are back
to near multi-year high levels, so it's tempting to cash in a
bit of profits in case things flare up again in Ukraine during
the weekend," Saxo Bank trader Andrea Tueni said.
After diplomatic efforts to cool the crisis in Ukraine
calmed markets over the past few days, tensions were rising
again, with U.S. President Barack Obama unveiling sanctions
against Russia, ordering visa bans and asset freezes against so
far unidentified persons deemed responsible for threatening
Russian President Vladimir Putin rebuffed the warning from
Obama on Friday, saying that Russia could not ignore calls for
help from Russian speakers in Ukraine.
European blue-chips with big exposure to Russia and Ukraine
were under renewed pressure, with Nokian Renkaat down 1.8
percent, Raiffeisen Bank International shedding 2 percent and
Carlsberg losing 1.2 percent. The three firms derive 26 percent,
22 percent and 17 percent respectively of their revenues from
Russia, according to data from MSCI.
Around Europe, UK's FTSE 100 index was down 0.2
percent, France's CAC 40 down 0.4 percent and Germany's
DAX index - seen the most vulnerable to tensions in
Ukraine and Russia - dropping 0.9 percent.
BEARISH DAX 'PUTS' IN DEMAND
Investors have recently piled into the options market for
protection against any future fall in the DAX, with data from
Eurex showing a rise in the ratio between "put" options betting
on a fall in the DAX and "call" options betting on a rise.
The put/call ratio on DAX options due to mature in March
jumped to 3.13 at the start of March from 1.47 in early February
Overall, trading volumes on the stock market were thin on
Friday morning as investors were reluctant to make fresh bets
ahead of U.S. monthly jobs data. Non-farm payrolls are forecast
to have risen by 149,000 in February, up from the
weather-depressed gains of 113,000 in January.
Analysts said expectations may have been lowered by the soft
ADP private-sector jobs report and ISM services sector survey
released earlier this week.
"Although estimates have been revised down, I doubt the
number will be way above given the rough patch the U.S. economy
is going through," said Ion-Marc Valahu, fund manager at
Geneva-based firm Clairinvest.
"No matter which way the number comes out, equity markets
are very stretched and 'overbought' in the short term since the
rally started on Feb 5th. I'm expecting that the markets will
stay flat or consolidate in the short term before making another
run for new highs later into the second quarter."
Despite Monday's selloff in stocks triggered by the
escalation in the Ukraine crisis, U.S. investors' appetite for
European stocks remained brisk.
A poll by Thomson Reuters Lipper of 103 U.S.-based funds
invested in European equities, which include exchange-traded
funds' (ETFs) holdings, shows the funds added $468 million into
European equities in the seven-day period to March 5th. That
marked a 36th straight week of net inflows and a sharp contrast
with further big outflows from emerging markets funds.
Europe bourses in 2014:
Asset performance in 2014:
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