European shares fall back, U.S. jobs data weighs

* FTSEurofirst 300 index down 0.8 after U.S. employment data

* Commodity stocks fall * For up-to-the-minute market news, click on [STXNEWS/EU]

By Joanne Frearson

LONDON, Nov 6 (Reuters) - European shares turned negative in afternoon trade on Friday after data showed U.S. employers cut 190,000 jobs in October, more than expected and driving the unemployment rate to 10.2 percent, the highest in 26-1/2 years.

By 1408 GMT, the pan-European FTSEurofirst 300 index of top shares was down 0.8 percent at 983.03 points, having earlier been up as much as 995.78 points.

The index has gained almost 52 percent from its lifetime low in March and is up nearly 18 percent for the year.

"What spooked the market the most was the unemployment rate which came in at 10.2 percent as everybody had expected 9.9 percent," said Philippe Gijsels, strategist at Fortis Bank.

"It reminded everyone we are not out of the woods yet," he said. "I think this is only the beginning of a more difficult situation for the equity markets."