Oil and Gas

European shares dip as mining and financial stocks fall

* STOXX 600 down 0.3 pct

* Pan-European index set for weekly loss

* Miners, financials weigh in risk-off trade

* Oil stocks rise as crude jumps (ADVISORY- Follow European and UK stock markets in real time on the Reuters Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets)

By Helen Reid

LONDON, April 7 (Reuters) - European shares fell on Friday, putting them on track for a small weekly loss, as major benchmarks tracked a global retreat by risky assets.

The pan-European STOXX 600 index was down 0.3 percent. Basic-resource stocks fell the most, 1.5 percent , but only three sub-sectors advanced. The STOXX 600 is down 0.4 percent this week.

Banking stocks were set for their biggest weekly losses in more than a month, down 0.5 percent on the day, another sign that so-called reflation trades were losing favour.

Oil stocks rose 0.4 percent after crude prices jumped more than 2 percent to a one-month high, in a reaction to U.S. President Donald Trump’s ordering airstrikes on a Syrian airbase.

Investors awaited a report on non-farm payrolls from the U.S. later in the session.

In Britain, data showed industrial output fell unexpectedly in February and manufacturers struggled, adding to signs economic growth may have slowed.

On the day, Swedish packaging materials firm Billerudkorsnas was one of the stocks declining the most, down 5.4 percent and set for its biggest loss in nine months. The company warned unexpected extra costs from production problems would hit its first-quarter earnings.

Its shares were through two days’ worth of average 30-day volume by 0830GMT.

Broker upgrades drove price moves by the top stocks.

British online grocer Ocado was down 4.8 percent, the largest European decline, after UBS cut its rating on the stock to ‘sell’ from ‘buy’.

“Growth rates in online grocery have slowed markedly (just when Ocado is bringing new capacity to market), and we think it may struggle to maintain price competitiveness in an inflationary environment,” UBS said.

Ocado shares were trading close to a six-month low hit in early February.

Upgrades from RBC boosted merging fund managers Standard Life and Aberdeen Asset Management, which were up 2.8 and 2.7 percent, the top European gainers.

Broadcasting company Mediaset Espana was up 2.3 percent after JP Morgan upgraded the stock to ‘overweight’ from ‘neutral’, citing exposure to strong ad trends in Spain.

A jump in the price of gold to a five-month high as investors rushed to safe havens sent miner Randgold Resources up 2.5 percent.

Real estate stocks also rose 0.4 percent, tracking a global uptick in defensive stocks.

Elisa traded ex-div, down 5.5 percent. (Reporting by Helen Reid, Editing by Vikram Subhedar, editing by Larry King)