Stocks Stable, Dollar Up Before U.S. Jobs Data

Stock markets steadied and the dollar firmed Friday before the release of monthly U.S. jobs data that will highlight strength of recovery in the world's biggest economy.

Around midday, European equities were mirroring a sluggish end to the week for Asian stocks.

Wall Street indices hit fresh record highs Thursday after data showed another fall in applications for U.S. unemployment benefits.

U.S. trade balance figures meanwhile contained hints of an end to supply chain snarls that have driven up prices.

In Europe, official data Friday showed German industrial output slumped again in June as businesses continued to contend with shortages of raw materials and components.

Friday sees U.S. payroll data that could give fresh clues as to when the Federal Reserve may begin to taper coronavirus support measures and put the brakes on inflation.

"If the data shows that the unemployment rate is improving..., we are more than likely to see a more hawkish side of the Fed when it comes to their monetary policy," noted Naeem Aslam, chief market analyst at Avatrade.

Despite more records on Wall Street, broader market sentiment has been dampened this week by the global spread of the Delta coronavirus variant.

"Delta concerns remain, though markets continue to view it more in the window of delay rather than derail given the high efficacy of vaccines," said Tapas Strickland at National Australia Bank.

"Nevertheless, a number of U.S. companies have pushed back the date when they expect most workers to return to offices given the spread of Delta," he added.

In Asia on Friday, Hong Kong's main stocks index finished down 0.1 percent on weakness in banking shares.

But Tencent was up nearly four percent to pare the week's losses after signs of a regulatory crackdown on the online gaming industry by Beijing.

Fellow entertainment company Nintendo was among the biggest losers on the Tokyo exchange, diving more than seven percent after reporting a worse-than-expected quarterly profit.

The Nikkei was up 0.3 percent at the close while Shanghai was down 0.2 percent.

Sydney closed up 0.4 percent despite city authorities reporting a record number of new Covid infections and warning residents to brace for worse to come, with around two-thirds of Australia's population now in virus lockdown.

Elsewhere, oil prices climbed with a report showing increases in U.S. crude exports amid demand recovery in coronavirus-hit markets.

"India posted twice as strong demand for U.S. crude, implying once a country gets beyond the Delta variant, crude demand will surge quickly," said Edward Moya of OANDA.

India's economic bounce-back from its devastating Covid wave earlier this year has seen rising inflation but its central bank kept rates at record lows for a seventh straight month on Friday.

- Key figures around 1030 GMT -

London - FTSE 100: FLAT at 7,122.88 points

Frankfurt - DAX 30: UP 0.1 percent at 15,765.60

Paris - CAC 40: FLAT at 6,783.33

EURO STOXX 50: UP 0.1 percent at 4,166.45

Tokyo - Nikkei 225: UP 0.3 percent at 27,820.04 (close)

Hong Kong - Hang Seng Index: DOWN 0.1 percent at 26,179.40 (close)

Shanghai - Composite: DOWN 0.2 percent at 3458.23 (close)

New York - Dow: UP 0.8 percent at 35,064.25 (close)

Euro/dollar: DOWN at $1.1809 from $1.1846

Pound/dollar: DOWN at $1.3911 from $1.3923

Euro/pound: UP at 84.88 pence from 85.08 pence

Dollar/yen: UP at 109.83 yen from 109.46 yen 

Brent North Sea crude: UP 0.6 percent at $71.69 per barrel

West Texas Intermediate: UP 0.5 percent at $69.44 per barrel