European stocks down ahead of US jobs data

On Friday European stocks fell as traders awaited U.S. jobs data for clues on the health of the world’s biggest economy that may give fresh impetus to bets on the Federal Reserve’s policy outlook. Bearish comments from investors Jeffrey Gundlach and Ray Dalio added to the impression of a sea change for bonds, with German 10-year yields climbing to an 18-month high as Treasuries also slipped. Emerging-market sovereign dollar bonds posted their worst week since November, while oil tumbled below $45 a barrel.

Comments from central bankers “clearly and understandably” signaled that stimulus will be tapered, according to hedge-fund investor Dalio. European Central Bank policy makers considered removing a pledge to increase their bondbuying program if needed when they met last month, according to accounts of the central bank’s June 7-8 meeting that were published Thursday.

The Stoxx Europe 600 index dropped 0.4 percent. The gauge is down 0.1 percent this week, poised for its fifth straight weekly decline. Futures on the S&P 500 Index were little changed for a decline of 0.5 percent this week. The underlying gauge slid 0.9 percent on Thursday, closing below its average price for the past 50 days.

The MSCI Asia Pacific Index declined 0.6 percent, for its biggest weekly loss since early March. Japan’s Topix index slipped 0.5 percent, its first weekly loss in a month. Australia’s S&P/ASX 200 Index lost 1 percent. South Korea’s Kospi dropped 0.3 percent.

West Texas Intermediate tumbled 3.1 percent to $44.09 a barrel, more than erasing Thursday’s 0.9 percent gain. Oil is down 4.2 percent for the week as a decline in U.S. stockpiles failed to convince investors that global markets are rebalancing. Gold slipped 0.3 percent to 1,221.44 an ounce. The precious metal is down 1.6 percent for the week, its worst performance since early May.