* FTSEurofirst 300 up 0.3 pct
* Index on course to rise 3 pct in week
* Key U.S. labour report awaited
* For up-to-the-minute market news, click on []
By Brian Gorman
LONDON, Sept 3 (Reuters) - European shares edged higher in
early trade on Friday after gains in the United States and Japan
but with traders cautious ahead of a key U.S. labour market
report.
At 0827 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.3 percent at 1,057.78 points, on course
for a rise of more than 3 percent this week.
Data due at 1230 GMT was expected to show U.S. non-farm
payrolls falling for a third straight month in August, hit by
the fading boost from census hiring, the reluctance by companies
to hire staff and the continued layoffs at cash-strapped state
and local governments. []
"People are watching the growth in (U.S.) private-sector
employment, which is likely to be too low to be good enough for
the economy," said Bernard McAlinden, investment strategist at
NCB Stockbrokers in Dublin.
"The market is going up on relatively unconvincing economic
data. It just needs to know there won't be a double dip. There's
no competition from interest rates and bond yields."
Energy companies were higher after crude prices <CLc1>
closed above $75 in New York on Thursday, boosted by an oil
platform fire in the Gulf of Mexico and Hurricane Earl's
possible impact on East Coast refineries.
Total <TOTF.PA>, Royal Dutch Shell <RDSa.L> and Statoil
<STL.OL> rose between 0.7 and 1 percent.
BP <BP.L> was up 0.3 percent. It said the cost of dealing
with its oil spill in the Gulf of Mexico had risen to $8 billion
and that it was a fortnight away from sealing the well for good.
In a broad market rise, the heavyweight banking sector was
among the gainers. Barclays <BARC.L>, Credit Agricole <CAGR.PA>
and Credit Suisse <CSGN.VX> rose between 0.6 and 0.9 percent.
Across Europe, Britain's FTSE 100 <>, Germany's DAX
<> and France's CAC40 <> were all up 0.3 percent.
ROCHE RISES
Swiss drugmaker Roche Holding AG <ROG.VX> rose 1.2 percent
after saying it will cut costs to cope with recent setbacks on
key drugs and rising pressures on prices from healthcare
reforms. []
UBS cut its year-end target for the pan-European index to
1,150 points from 1,250, the broker said in a note, though the
new forecast is still a 9 percent upside from Thursday's closing
level.
"If it becomes clear that a double-dip will be avoided (our
central scenario), then the potential upside is significantly
higher," UBS strategists said.
The European benchmark soared 62 percent between hitting a
lifetime low in March 2009, and the end of the year. But it is
up barely 1 percent in 2010 as investors worry about European
debt levels and the strength of the economic recovery.
The Euro STOXX 50 <> rose 0.3 percent to 2,723.29
points, through a key resistance level of 2718, the 50 percent
Fibonacci retracement from the July 20 to Aug. 5 rally.
The index's next resistance level is 2,737, the 50 percent
retracement of a fall from an April high to a May low.
Data on Friday provide a reminder of some of the problems
faced by the euro zone peripheral countries. Activity in Spain's
dominant service sector unexpectedly fell in August after five
months of positive momentum, hit by a hike in value-added tax
from July, a key survey showed. []
(Additional reporting by Dominic Lau; Editing by Michael
Shields)
