European shares lower

On Friday, the dollar extended gains to an almost three-month high and Treasury yields rose as confidence in the world’s largest economy grows in the buildup to the latest jobs data. European shares edged lower, bond yields rose and the euro pared losses as the Catalonia crisis continued to unfold.

Positive sentiment around the U.S. coupled with the uncertain outlook for the separatist campaign in Spain’s biggest regional economy helped offset a surge in German factory orders for European assets. Political risks were also key in the U.K., with the pound dropping to the lowest in a month after a former cabinet colleague announced he is running a campaign to oust Prime Minister Theresa May.

Investor focus will now turn to September’s employment figures from the U.S. in the hope of more good news for the economy, following Thursday’s better-thanforecast American factory orders. Employers probably added 80,000 workers last month, according to the median estimate of economists, with the two major hurricanes that inflicted potentially $90 billion in economic losses likely affecting the data.

Elsewhere, stocks in Japan and Australia climbed, after U.S. stocks closed at yet another record. Oil fell and the gold price edged higher.

The Stoxx Europe 600 Index dipped 0.2 percent as of 11:28 a.m. London time. The MSCI All-Country World Index declined less than 0.05 percent. The U.K.’s FTSE 100 Index rose 0.2 percent. Germany’s DAX Index rose 0.1 percent. The MSCI Emerging Market Index increased 0.1 percent to the highest in more than two weeks. Futures on the S&P 500 Index fell less than 0.05 percent to 2,549.00.

The yield on 10-year Treasuries advanced two basis points to 2.36 percent, the highest in more than 12 weeks. Germany’s 10-year yield rose three basis points. Britain’s 10-year yield was unchanged at 1.387 percent, the highest in eight months.