The U.S. dollar was mixed ahead of the monthly jobs data. It is generally consolidating Thursday's losses against the European currencies and Japanese yen, while slipping against the dollar-bloc.

The increased concerns about the trajectory of growth, especially in the U.S. and China, arrive at the same time that successful bond auctions and refi operations in the eurozone generated a positive news stream providing fuel in recent days for a recovery in the euro and sterling that already was under way. Meanwhile, the unwinding of risk-on trades and the narrowing of interest rate differentials helped underpin the yen. At this juncture, it would seem to take a significant upside surprise in Friday's U.S. employment report to reverse the near-term trends.

Asian equities were mixed, though the MSCI Asia-Pacific Index was off about 0.4% to finish the week down 3.6%. The Nikkei peaked out a little more than 0.1%, and Shanghai was up 0.4%. The Hang Seng was the region's biggest loser, dropping 1.1%, with basic materials and oil and gas posting outsized losses.

European bourses opened higher Friday but have made little progress in either direction, perhaps awaiting directional cues from the U.S. market. Commodities, industrials and financials were more than offsetting the decline in telecoms, health care and consumer goods Friday.

Bond markets were trading quietly.JGBs fell for the first time since the start of the week. The 10-year yield reached a seven-year low this week, but the market is reluctant to push the yield below 1%. Next week brings fresh supply. Calmer markets and the supportive news stream have seen peripheral European bond premiums narrow. Even Italian bond yields have fallen although the government reported deterioration in finances (June budget surplus of €4.3 billion down from €6.2 billion last year).
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