KLM and Lufthansa also nosed higher as oil prices receded further from recent highs. The health of the U.S. job market has been a key concern for investors, especially as the record price of oil threatens to hamper spending. Consumer spending accounts for about two-thirds of the economy. A separate economic report published on Friday showed U.S. consumer sentiment had taken a surprise spill in September, suggesting Americans were sitting tight due to uncertainty over the economic outlook and the job market. The University of Michigan's index of consumer confidence fell to 94.2 in September from 95.9 in August, according to market sources who saw the subscription-only report. Analysts had been looking for a slight rise to 96.0. Among European shares, hedge fund manager Man Group was a bright spot, adding 4 percent after its chairman and chief executive showed their confidence by buying shares. Man Group said it planned to start a share buyback programme during its close period starting today. But Merloni fell to a 16-month low at 11.71 euros after Europe's third-largest home appliance maker cut its 2004 profit forecast, joining rival Electrolux in blaming higher input prices such as steel and oil for a weaker outlook. --SP 1818 Local Time 1518 GMT
