European shares continued to trim their losses early Thursday afternoon, with traders saying investors were buying on this morning's dips after the index had bounced off its day's low.

At 1:21 p.m., the FTSEurofirst 300 <.FTEU3> index of top European shares was 0.3 percent lower at 1,083.85 points after trading as low as 1,076.91 points earlier on Thursday.

Any time the market dips a few points you start to see some buying coming in, said ETX Capital head of trading, Manoj Ladwa, who had set a 1,076 support level for the index.

Volumes are pretty light as well and that exaggerates the move.

The FTSEurofirst 300 had only traded 33.5 percent of its 90-day average at 1:21 p.m.

(Reporting By Francesco Canepa)