European and Asian stock markets mostly retreated on Friday, as investors awaited key US jobs data for clues on the outlook for interest rates in the world's biggest economy.
The US Labor Department will later Friday release jobs figures for April, with expectations of a slowdown in new posts.
But while the report is forecast to show the world's number one economy is not as strong as hoped, the dollar has managed to hold its gains after two Federal Reserve bosses argued the case for an interest rate hike as early as June.
"As we have come to expect on payrolls day, there is a notable caution in risk assets," said Brenda Kelly, head analyst at traders London Capital Group.
Around 0900 GMT London's benchmark FTSE 100 index was down 0.5 percent compared with Thursday's close.
In the eurozone, Frankfurt's DAX 30 index shed 0.3 percent and the Paris CAC 40 lost 0.6 percent in value.
"European markets look set to finish lower for the second week in succession as concerns about a weakening growth outlook and the efficacy of central bank policy in combating it start to weigh on sentiment," said Michael Hewson, chief market analyst at CMC Markets UK.
In foreign exchange, the euro rose against the dollar in a volatile week for the single currency. On Tuesday, the euro reached an eight-month high at $1.1616 but stood at $1.1418 by Friday.
Confidence on trading floors has been sparse the past two weeks following disappointing data and announcements from China to the United States that tore a hole in hopes the world economy was showing signs of recovery.
On Friday, Asian stock markets mostly fell as lingering worries over global growth sent traders running from higher-risk assets.
Analysts meanwhile expect the Department of Labor data to show the US added 207,000 jobs in April, down from 215,000 jobs in March.
David Levy, portfolio manager at Republic Wealth Advisors, said investors are looking for a sign the US economy will pick up in the second quarter after first-quarter growth was estimated at just 0.5 percent.
"We're muddling along," Levy said.
- Key figures around 0900 GMT -
London - FTSE 100: DOWN 0.5 percent to 6,089.73
Frankfurt - DAX 30: DOWN 0.3 percent at 9,821.15
Paris - CAC 40: DOWN 0.6 percent at 4,293.84
EURO STOXX 50: UP 0.5 percent at 2,926.64
Tokyo: Nikkei 225: DOWN 0.3 percent at 16,106.72 (close)
Shanghai: DOWN 2.8 percent at 2,913.25 (close)
Hong Kong: DOWN 1.7 percent at 20,109.87 (close)
New York - Dow: UP 0.1 percent at 17,660.71 (close)
Euro/dollar: UP at $1.1418 from $1.1404 Thursday
Dollar/yen: DOWN at 106.94 yen from 107.26 yen