European shares ended lower, snapping their six day winning streak, as a weak U.S. employment data weighed on investors positive sentiment and commodity stocks were hit by lower crude and metal prices. The pan-European FTSEurofirst 300 .FTEU3 index of top European shares provisionally closed down 1.5 percent at 875.94, having fallen to as much 871.92 points earlier. David Buik, partner at BGC Partners, said: "There are three factors influencing Europe today. Firstly, the markets have been too frothy over the past few days and have been ahead of themselves. Secondly, Adolf Merckle's suicide has given credence to the depth of the credit crisis and damage it has been doing to the Germany economy." "Lastly and most importantly has been the dreadful U.S. ADP employment data and the fall in U.S. mortgage applications. This has been a wake up call for the European markets. Sentiment has changed and profit takers have come in," he added. U.S. private employers shed 693,000 jobs in December, up sharply from the revised 476,000 jobs lost in November and far more than economists estimated, a report by a private employment service said. [ID:nL7200802] The U.S. Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity fell to its lowest reading since December 2000. [ID:nN22359627] Energy stocks were the biggest losers on the index as crude CLc1 fell back 7.6 percent. BP (BP.L) lost 5.8 percent as the oil major was dogged by rumours it told analysts earning would be lower than expected. BP denied the rumours. [ID:nL7373850] BG Group (BG.L), Royal Dutch Shell (RDSb.L) and Total (TOTF.PA) were down between 4.25-5.1 percent. Miners were in the doldrums as metal prices retreated. Anglo American (AAL.L), BHP Billiton (BLT.L), Eurasian Natural Resources (ENRC.L) and Rio Tinto (RIO.L) were down 4.9-5.95 percent. (Reporting by Joanne Frearson) (joanne.frearson@thomsonreuters.com; +44 207 542 2773, Reuters

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