Europe shares pare losses, tracking U.S. rebound

LONDON, March 7 (Reuters) - European shares trimmed losses in late Friday trading as U.S. stocks staged a rally on short covering, despite a shock drop February non-farm payrolls data.

The FTSEurofirst 300 .FTEU3 index of top European shares was down 0.6 percent at 1,274.81, well off its day's low of 1,258.27.

U.S. stocks turned positive as investors covered their short positions in semiconductors and financials, which have borne the brunt of the selling this week.

Anglo Irish Bank ANGL.I put on 4.8 percent, while Dutch-Belgian financial group Fortis (FOR.BR) rose 4.3 percent. But Telecom Italia (TLIT.MI) topped the losers on the FTSEurofirst 300, down 8.7 percent. (Reporting by Dominic Lau)