LONDON, Nov 7 (Reuters) - European shares pared gains on Friday after data showed the U.S. economy lost more jobs than expected in October in the tenth consecutive month of declines, which exacerbated concern over the severity of any recession.
The U.S. government said 240,000 workers were lost from non-farm payrolls in October, compared with forecasts for a drop of 200,000, while September payrolls figures were revised to show a fall of 284,000, from an original 159,000.
By 1337 GMT the FTSEurofirst 300 index of top European shares was up 0.4 percent at 901.72 points, compared with 904.57 just before the data and down from a session high of 911.06.
U.S. stock futures DJZ8 SPZ8 NDZ8 were up between 0.4 and 1.4 percent, indicating a modest rise at the start of trade on Wall Street, while U.S. Treasury prices turned negative and the dollar extended its losses against the yen .
In Europe, energy shares were still the biggest positive influence on the broader market even as the oil price CLc1 pared some of its gains.
BP (BP.L: Quote, Profile, Research) was up 3.2 percent, while StatoilHydro (STL.OL: Quote, Profile, Research) was up 3.1 percent and Total (TOTF.PA: Quote, Profile, Research) gained 0.6 percent.
Banks were the largest drag, with HSBC (HSBA.L: Quote, Profile, Research) down 2.6 percent, UBS (UBSN.VX: Quote, Profile, Research) off 3.2 percent and BNP Paribas (BNPP.PA: Quote, Profile, Research) off 2 percent.
