Europe shares down after U.S. jobless tally rises

* FTSEurofirst 300 down 1.8 percent

* ECB holds rates; U.S. jobless well above forecast

* Elan soars after J&J takes stake

By Brian Gorman

LONDON, July 2 (Reuters) - European shares fell further in afternoon trade on Thursday after new data showed U.S. employers cut 467,000 jobs in June, far more than expected and increasing the U.S. unemployment rate to 9.5 percent.

At 1300 GMT the pan-European FTSEurofirst 300 index was down 1.8 percent at 850.26 points after hitting the session's low of 849.27. The benchmark index jumped 1.8 percent on Wednesday.

Investors were also digesting ECB President Jean-Claude Trichet's news conference after the European Central Bank held euro zone interest rates at 1.0 percent and markets expect it to hold them at the all-time low for much of next year to help repair the region's economy. [ID:nL2512532]

Earlier Sweden's central bank shocked markets by cutting its interest rates by a further 25 basis points to 0.25 percent. [ID:nL2601049]