Europe stocks trim losses after U.S. jobs data

European stocks trimmed losses on Friday afternoon after better-than-expected U.S. monthly payroll data, but remained in the red as the unemployment rate climbed to 5.7 percent in July, its highest in more than four years.

At 1237 GMT, the FTSEurofirst 300 index of top European shares was down 0.4 percent at 1,175.30 points. The U.S. Labor Department said 51,000 non-farm jobs were lost in July, bringing losses for the year to 463,000.

Analysts polled by Reuters had expected the 75,000 jobs to be cut last month but had forecast the unemployment rate would rise only to 5.6 percent. "Somewhat better than forecast which was to be expected after the ADP Report. I think the market will trade a little higher on that but it isn't good enough for us to rally," said Stefan de Schutter, asset manager at Alpha Trading in Frankfurt.