July 7 (Reuters) - European shares edged lower on Friday, following sharp losses in the previous session, after U.S. data that showed a still strong labor market, while investors await a key U.S. jobs report due later in the day for more clues on interest rate outlook.
The pan-European STOXX 600 index (.STOXX) fell 0.4% by 0710 GMT, set for its worst week since mid-March, led by declines in utilities shares (.SX6P), which slid 1.2%.
European equities took a hit on Thursday after private payrolls in the United States surged far more than expected in June, suggesting the labor market remained solid despite growing risks of a recession.
Investors will be hawkeyed on the American non-farm payrolls report, due at 8:30 a.m.
The report is expected to show a drop in number of jobs created in the U.S. in June compared to a month earlier.
Persons:
Matteo Allievi, Shubham Batra, Janane
Organizations:
Shell, Thomson
Locations:
U.S, United States, Gdansk, Bangalore