European shares started the new quarter with fresh declines as oil companies tumbled and investors assessed the implications of better-than-expected US jobs data. A measure of energy-related companies fell the most of the 19 industry groups on the STOXX Europe 600 Index, with Total SA leading the retreat. Crude slipped as Saudi Arabia's deputy crown prince said the kingdom would only freeze production if Iran and others follow suit. Zurich Insurance Group AG dragged insurers lower. The STOXX 600 dropped 1.3 percent to 333.15 at the close of trading, paring losses of as much as 2.4 percent. After rebounding 14 percent in five weeks through March 14, the gauge stumbled to end the first quarter down 7.7 percent. That is the worst start to a year since 2009, with all but one of its constituent groups falling. The VSTOXX Index, which tracks volatility expectations for euro-area stocks, advanced 7.1 percent yesterday. "The market is missing confidence," said Mathias Haege, a managing partner at MaxAlpha Asset Consultant in Frankfurt. "At the end of the day, it doesn't matter what central banks are doing if economic growth doesn't accelerate and corporate earnings continue to shrink." US employment climbed and wages picked up last month, according to a US Department of Labor report. Average hourly earnings increased 0.3 percent from a month earlier, while the jobless rate crept up to 5 percent as more people entered the labor force. European shares briefly pared losses after the release before extending their retreat. Investors are parsing the data for indications of the trajectory of interest rates after recent mixed economic reports and US Federal Reserve Chair Janet Yellen's reiteration that any increases will be gradual in light of uncertain global growth. Traders have cut the odds of an increase this month to zero, with the probability of a June move seen at 26 percent. Among stocks moving on corporate news, Airbus Group SE slipped 2.4 percent. Engine problems will delay the deliveries of its A400M aircraft, German newspaper Bild said. Petrofac Ltd fell 4.9 percent after saying it was looking into bribery allegations made in the press this week. ThyssenKrupp AG rose 4.9 percent following a report that it is in talks with Tata Steel Ltd about possible participation in the German company's steel business.
