Real estate, utilities lead losses
STOXX down 0.5, though set for weekly gains
doValue gains after entering binding agreement to buy Gardant

June 7 Reuters European shares extended losses on Friday, dragged down by ratesensitive sectors such as real estate after a hotterthananticipated U.S. jobs report fanned worries the Federal Reserve would not cut interest rates anytime soon.

The continentwide STOXX 600 was last down 0.5, hitting session lows after the data, but is poised to clock its first weekly gain in nearly a month.

A report from the U.S. Labor Department showed job growth increased far more than expected in May, which is likely to keep the Fed from starting to cut interest rates at least until September.

The NFP were surprising on the upside, but the unemployment numbers narrate a different view, said Eugenio Aleman, chief economist at Raymond James.

We39;ll have to wait and see what the next couple of months look like because the Fed is not going to relent to lowering interest rates with such a strong labour market.

Real estate led sectoral losses with a near 3 drop, dragged down by a 6.9 fall in German real estate group Vonovia on a Morgan Stanley rating downgrade.

Most STOXX 600 sectors traded lower, with utilities, which is also a ratesensitive sector, shedding 1.6.

Government bond yields across the continent also perked up following the data, with the yield on the 10year bund , considered as the region39;s benchmark, last at 2.619.

The data…