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European shares slip again, Commerzbank recovers

PARIS, Aug 7 (Reuters) - European stocks slipped in early trade on Thursday, extending a week-long slide as tensions between the West and Russia continued to spook investors.

Shares in Munich Re dropped 3.8 percent after posting lower-than-expected results, while Rheinmetall sank 4.7 percent after slashing its 2014 operating profit target after the German government withdrew its approval for a contract with Russia.

At 0710 GMT, the FTSEurofirst 300 index of top European shares was down 0.2 percent at 1,321.40 points. The index has dropped about 3.3 percent over the past week.

Bucking the trend, Commerzbank surged 4.1 percent after Germany's second biggest lender posted an increase in second-quarter earnings due in part to a fall off in bad loans.

Investors also awaited the European Central Bank policy meeting. The ECB is set to hold fire on rates as it waits for earlier stimulus measures to gain traction, while keeping an eye on emerging risks from the conflict in Ukraine.

(Reporting by Blaise Robinson; Editing by Alistair Smout)