Global shares mostly fall on caution ahead of a key U.S. employment report

TOKYO –

Global shares mostly declined Friday ahead of a highly anticipated U.S. jobs report that’s expected to influence how the U.S. Federal Reserve will move on interest rates.

France’s CAC 40 slipped 0.3 per cent in early trading to 7,407.73, while Germany’s DAX shed 0.6 per cent to 18,467.13. Britain’s FTSE 100 dropped 0.5 per cent to 8,203.63. U.S. shares were set to drift lower with Dow futures down 0.3 per cent at 40,691.00. S&P 500 futures fell nearly 0.7 per cent to 5,476.25.

Trading was cautious in Asia amid lingering worries about a possible recession in the U.S. The job market report, set for release later in the day, is key, possibly dictating how big of a cut to interest rates the Federal Reserve will deliver at its next meeting later this month.

After keeping its main interest rate at a two-decade high to stifle inflation, the Fed has hinted it’s about to begin cutting rates to keep the economy from sliding into a recession.

Japan’s benchmark Nikkei 225 fell 0.7 per cent to finish at 36,391.47. Australia’s S&P/ASX 200 rose 0.4 per cent to 8,013.40, while South Korea’s Kospi slipped 1.2 per cent to 2,544.28. The Shanghai Composite shed 0.8 per cent to 2,765.81. Trading was halted in Hong Kong because of a typhoon.

In the U.S., one report suggested companies slowed their hiring last month, falling short of forecasts, while another found fewer workers filed for unemployment benefits last week than expected.

A separate report said growth for businesses in the finance, health care and other services industries was stronger last month than expected.

In energy trading, benchmark U.S. crude fell three U.S. cents to US$69.12 a barrel. Brent crude, the international standard, added 4 cents to US$72.73 a barrel.

In currency trading, the U.S. dollar edged down to 142.75 Japanese yen from 143.40 yen, The euro cost US$1.1111, little changed from US$1.1112.

AP Writer Stan Choe contributed.