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Euro Shares Set to Fall on US Recession Fears

European stocks were set to drop on Monday, adding to the previous session's sharp fall as investors continue to fret about recession risks for the U.S. economy in the wake of disappointing U.S. December jobs data.

Financial bookmakers, or spread betters, in London expected Britain's FTSE 100 index to open between 10 and 18 points lower, the German DAX 27 to 33 points lower and the French CAC 40 10 to 15 points lower.

Data showed on Friday U.S. monthly jobs growth was the worst in over four years and the unemployment rate hit a two-year high in December, sparking new worries the U.S. economy may slip into recession.

The weak jobs report hammered stocks on Friday, with the FTSEurofirst 300 index of top European shares ending down 1.8 percent at 1,457.6 points, its lowest close since late November.

The FTSEurofirst 300 has lost 3.3 percent so far this year.

"Poor payroll figures out of the U.S. spurred fears of an impending recession, not helped by the ongoing demise of the housing market. The markets are looking for a 50 basis point cut in the Fed overnight cash rate when the central bank next meet at the end of the month," Oliver Stevens, head of dealing at IG Markets, wrote in a note.