LONDON (AFP) – Europe's main stock markets gained ground on Friday, recouping some of their recent heavy losses, but investors were cautious before key US payrolls data amid gloom over the global economy.
London's benchmark FTSE 100 index climbed 0.55 percent to 4,832.19 points in late morning deals, Frankfurt's DAX 30 won 0.29 percent to 5,874.50 points and in Paris the CAC 40 added 0.27 percent to 3,348.35.
The Stoxx 50 index of leading eurozone shares increased by 0.30 percent to 2,526.27 points.
"Overall, the market still looks decidedly unhealthy after the slides seen in the last couple of weeks," said IG Index analyst Anthony Grech in London.
"The risk remains that brief rallies will end up being just that -- and will be viewed as an opportunity to sell into strength rather than a sign of confidence returning."
In foreign exchange trading, the European single currency eased to 1.2503 dollars, down from 1.2524 dollars in New York late on Thursday.
The shared eurozone unit had breached 1.25 for the first time in more than a month on Thursday, lifted in part by a successful bond issue by Spain and disappointing US economic data.
However, hanging over markets was the likelihood of negative US unemployment data later on Friday, fuelling fears of a "double-dip" recession at the close of a week of bad news.
"The market goes into today's US non-farm payrolls report showing a distinct lack of confidence and sentiment towards risk assets, with participants balancing between fear and outright panic," said Lloyds Banking Group economist Kenneth Broux.
On Thursday the US Labor Department reported yet more people claimed unemployment benefits last week, when new jobless claims rose to 472,000, an increase of 13,000 from the week before home kerosene heaters.
Job growth is considered a key factor in getting the world's biggest economy on a sustainable growth path.
The blue-chip Dow Jones Industrial Average fell 0.42 percent Thursday, the sixth consecutive day of losses.
Asia-Pacific markets were sluggish on Friday with Sydney flat despite the easing of a major tax row and Tokyo slightly up, but US worries dampened overall sentiment.
Hong Kong fell 1.11 percent, dragged down by negative manufacturing data from the mainland this week and global economic worries.
On the upside, Tokyo rose 0.13 percent on bargain hunting after a five-day losing streak.
And Sydney added just 0.03 percent, following an early rally after Prime Minister Julia Gillard said she had reached a compromise with mining companies to replace her predecessor's proposed mining "super tax".
Stock markets in Europe and the United States had suffered sharp losses on Thursday as ominous downbeat economic data and renewed jitters over Spain's finances put investors in a selling mood.
China's Purchasing Managers Index fell to 52.1 in June from 53.9 in May, the China Federation of Logistics and Purchasing said.
And there was also news of a pronounced decline in pending home sales in the United States.
In addition, the US manufacturing sector expanded in June but at a slower pace than had been expected, an industry survey showed.
