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LONDON, Aug 7 (Reuters) - European shares fell in early deals on Friday, weighed down by Germany's top share index after a surprising fall in industrial output.
Germany's DAX fell 0.5 percent, underperforming a 0.4 percent drop on the broader FTSEurofirst 300, after German industrial output declined and exports fell by more than expected, raising questions about the strength of the recovery in Europe's largest economy.
Better data was expected from the United States, where the number of U.S. jobs probably rose at a healthy pace in July and wages likely rebounded in data due later in the day, providing further signs of an improving economy that could allow the Federal Reserve to raise interest rates in September.
Finnish tyre maker Nokian Tyres dropped 4 percent, a top STOXX Europe 600 faller, after it cut its full-year profit forecast due to poor demand in its key market Russia. (Reporting by Alistair Smout, editing by Liisa Tuhkanen)