LONDON, Nov 7 (Reuters) - European shares were set to open lower on Friday, tracking sharp losses in U.S. and Japanese markets, as investors continued to worry about the state of the economy and deteriorating corporate outlooks.

Britain's FTSE 100 is expected to open as much as 0.7 percent lower, Germany's DAX is seen down as much as 0.7 percent and France's CAC-40 may fall as much as 0.5 percent, according to financial bookmakers.

The FTSEurofirst 300 index of leading European shares fell 5.8 percent to close at 898.13 points on Thursday, while U.S. stocks fell in their worst two-day slide since October 1987 with poor corporate outlooks and bleak sales from major retailers fuelling fears of a worsening economic downturn.

Japan's Nikkei index closed 3.6 percent lower on Friday.

U.S. non-farm payrolls data, due at 1330 GMT, will be in focus, with analysts expecting 200,000 jobs to have been lost in October.

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