LONDON: World stocks and the euro slipped on Friday while core
government bonds rose as concerns about the euro zone debt crisis
resurfaced and investors braced for jobs data that could signal the US
economy is heading for recession.
Confirmation that Greece will miss its 2011 deficit target of 7.6 percent and uncertainty over Italy's commitment to austerity measures underscored unease about the single currency zone, prompting investors to shy away from riskier assets.
The US employment report, due at 8:30 a.m. EDT, is expected to show an increase of 75,000 jobs, down from 117,000 in July.
"I think the job figures are going to be worse than expected. It could be a wake-up call for the market and share prices could go down even further," said Koen De Leus, strategist at KBC Securities in Brussels.
"Expectations of QE3 (another round of US quantitative easing) have helped shares in the past days, but at the end of the day, the market needs a better economic environment that stimulates growth and company results."
MSCI's world equity index lost 0.7 percent. It was still on track for a second consecutive weekly gain after a volatile August that pushed the benchmark index to an 11-month low at one point.
European stocks fell 1.7 percent after rising so far this week, while emerging stocks dropped 0.7 percent following a five-day rally.
US crude oil was down 0.9 percent at $88.17 a barrel.
Confirmation that Greece will miss its 2011 deficit target of 7.6 percent and uncertainty over Italy's commitment to austerity measures underscored unease about the single currency zone, prompting investors to shy away from riskier assets.
The US employment report, due at 8:30 a.m. EDT, is expected to show an increase of 75,000 jobs, down from 117,000 in July.
"I think the job figures are going to be worse than expected. It could be a wake-up call for the market and share prices could go down even further," said Koen De Leus, strategist at KBC Securities in Brussels.
"Expectations of QE3 (another round of US quantitative easing) have helped shares in the past days, but at the end of the day, the market needs a better economic environment that stimulates growth and company results."
MSCI's world equity index lost 0.7 percent. It was still on track for a second consecutive weekly gain after a volatile August that pushed the benchmark index to an 11-month low at one point.
European stocks fell 1.7 percent after rising so far this week, while emerging stocks dropped 0.7 percent following a five-day rally.
US crude oil was down 0.9 percent at $88.17 a barrel.
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