Utilities drag on Europe shares as RWE disappoints

European shares fell early on Friday, dragged lower by utilities after disappointing profits from Germany’s RWE, while heavyweight oil stocks tracked crude prices lower.

At 0815 GMT, the FTSEurofirst 300 index was down 0.6 percent at 1,322.61, having pared gains towards the close on Thursday when U.S. data showed the weakest reading on mid-Atlantic manufacturing since 2001, fanning recession fears.

RWE dropped 5.3 percent, making it the biggest percentage loser on the pan-European index, after the company reported profits below expectations. German peer E.ON lost 2.3 percent.

Oil shares also fell as crude prices eased further away from recent record levels around $101 a barrel on the back of rising U.S. crude and gas stockpiles, which added to evidence of slowing demand in the world’s largest consumer.

BP was down 1.3 percent, Royal Dutch Shell shed 1.3 percent and Total gave up 1.2 percent.