* FTSEurofirst 300 up 0.1 pct
* Spanish shares rise again following ECB, banks in demand
* But Monte Paschi, BNP weigh on national indexes
* Non-farm payrolls due 1230 GMT, wide range of estimates
By Alistair Smout
EDINBURGH, June 6 Spanish blue chips led
European shares towards their eighth straight week of gains on
Friday, a day after the European Central Bank eased monetary
policy on several fronts, though trade was cautious ahead of
U.S. jobs data.
Banks in states on the euro zone periphery were in demand,
helping boost Spanish shares by 0.4 percent. Italian
shares gave away early gains, however, after Banca
Monte Paschi priced a cash call at a discount.
Hopes that the ECB would act have fuelled European stocks on
their winning run - the longest on the FTSEurofirst 300
since an 11-week streak in mid-2012 that was supported by ECB
President Mario Draghi's pledge to do "whatever it takes" to
save the euro.
The FTSEurofirst 300 edged up by 0.1 percent on Friday, with
banks up 0.8 percent.
Draghi stopped short of announcing a "money printing"
quantitative easing programme on Thursday, but the string of
measures he did outline to fight low inflation and boost the
bloc's economy were seen as supportive.
"The one thing that was missing was bond purchases, but
that's a last resort. For the banking sector in Europe, though,
this is an encouraging statement and perhaps even slightly ahead
of expectations," Veronika Pechlaner, who helps manage $13
billion of assets at Ashburton Investments, said.
"We've had a bit of a rally and a strong recovery over the
last couple of months. So after the announcement yesterday,
you're probably happy to stay long in banks, and have positions
that will benefit from low funding costs, but you wouldn't add
to longs here necessarily."
Individual lenders weighed on the sector, however.
As well as Monte Paschi, BNP Paribas fell 1.1
percent, dragging France's CAC index into negative
territory after Reuters reported that U.S. regulators had looked
at a $16 billion fine for the bank for breaking trade sanctions.
Moves were subdued ahead of the U.S. nonfarm payrolls report
due at 1230 GMT, which considered more uncertain than usual and
likely to provide direction for markets.
The median forecast is for a solid gain of 218,000, but
estimates range from as little as 110,000 to as high as 325,000.
The median would be a deceleration from April's outsized
288,000-job gain, when hiring was bouncing back from a winter
"As far as the employment data (is concerned), we think the
market to some extent will look for a move higher on the back of
this data which we think will surprise to the upside," Atif
Latif, director of trading at Guardian Stockbrokers, said.
"The cyclical recovery remains on track."
Europe bourses in 2014: link.reuters.com/pap87v
Asset performance in 2014: link.reuters.com/gap87v
Today's European research round-up
(Editing by John Stonestreet)