Asian shares fell
on Friday and bonds tried to stabilize after a vicious losing streak,
while the euro consolidated the week's hefty gains as investors braced
for U.S. jobs data and another day of drama over Greece.
The main exception was China, where stocks advanced after a week of roller-coaster action. Shanghai .SSEC added 0.7 percent and cleared the 5,000-point barrier for the first time since early 2008, while the CSI300 .CSI300 gained 0.3 percent.
Elsewhere, the mood was very subdued with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS down a slim 0.3 percent. Japan's Nikkei 225 .N225 and shares in South Korea .KS11 lost 0.1 percent.
In
the latest Greek twist, Prime Minister Alexis Tsipras will put
creditors' proposals to parliament from 1500 GMT on Friday, but he has
already dubbed the plan "extreme".
Before that likely contentious meeting gets underway, markets are bracing for the latest reading on U.S. jobs.
Median forecasts in a Reuters poll are for payrolls to rise 225,000 with the jobless rate steady at 5.4 percent. ECONUS
Yet markets only imply a one-in-three chance of a lift off in Fed funds by September, and are not fully priced for a move until December.
"That September is seen as the first possible tightening by the Fed and there are two meetings before then, detracts significantly from the sensitivity to the data," says Alan Ruskin, head of forex at Deutsche.
"It would probably need a payroll number either side of 150,000 or 250,000 to get the market really excited whereby Fed expectations/probabilities start to change materially."
Caution ahead of the report kept Wall Street on the defensive. The Dow .DJI ended Thursday down 0.94 percent, while the S&P 500 .SPX lost 0.86 percent and the Nasdaq .IXIC 0.79 percent.
Declining oil and gold prices also weighed on energy and materials shares, which led declines in the S&P 500.
Global bonds steadied somewhat after a torrid week. Yields on 10-year Treasury paper US10YT=RR were hovering around 2.32 percent having been as high as 2.425 percent on Thursday.
Elsewhere, the mood was very subdued with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS down a slim 0.3 percent. Japan's Nikkei 225 .N225 and shares in South Korea .KS11 lost 0.1 percent.
Before that likely contentious meeting gets underway, markets are bracing for the latest reading on U.S. jobs.
Median forecasts in a Reuters poll are for payrolls to rise 225,000 with the jobless rate steady at 5.4 percent. ECONUS
Yet markets only imply a one-in-three chance of a lift off in Fed funds by September, and are not fully priced for a move until December.
"That September is seen as the first possible tightening by the Fed and there are two meetings before then, detracts significantly from the sensitivity to the data," says Alan Ruskin, head of forex at Deutsche.
"It would probably need a payroll number either side of 150,000 or 250,000 to get the market really excited whereby Fed expectations/probabilities start to change materially."
Caution ahead of the report kept Wall Street on the defensive. The Dow .DJI ended Thursday down 0.94 percent, while the S&P 500 .SPX lost 0.86 percent and the Nasdaq .IXIC 0.79 percent.
Declining oil and gold prices also weighed on energy and materials shares, which led declines in the S&P 500.
Global bonds steadied somewhat after a torrid week. Yields on 10-year Treasury paper US10YT=RR were hovering around 2.32 percent having been as high as 2.425 percent on Thursday.
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