GLOBAL MARKETS-World shares ease off record highs ahead of U.S. jobs data

* World shares set for worst week in more than two months
* Dollar heads for its best week since May
* German industrial data point to slow recovery
* U.S. jobs data eyed
* World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Tom Arnold and Tom Westbrook
LONDON/SINGAPORE, Sept 4 (Reuters) - World shares slipped
from record highs on Friday, and were on course for their worst
week in more than two months, while gains in bonds and the
dollar were modest as investors waited to see if U.S. jobs data
triggers a bigger sell-off.
The pan-European STOXX 600 index .STOXX traded flat after
earlier rebounding from its worst day in more than a month a day
before amid a tech-led plunge on Wall Street on Thursday.
German industrial goods orders rose by a
smaller-than-expected 2.8% on the month in July, undermining
hopes of recovery for Europe's largest economy from the
coronavirus shock. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 1.3% and looked set to snap a six-week
winning streak with its biggest weekly loss since April. Japan's
benchmark Nikkei share average .N225 closed down 1.1%.
The MSCI world equity index .MIWD00000PUS , which tracks
shares in 49 countries and had touched record highs earlier on
Thursday, shed 0.2%.
"Stock market valuation is rich on a stand-alone basis, but
far less extreme compared to other asset classes. Hence, it's
likely a bit too soon to be calling the next bear market even
though September 3 did mark the top of the equity market back in
1929," said Jeroen Blokland, portfolio manager at Robeco.
U.S. futures were mixed, recovering some ground after
heavier losses earlier in the session. Nasdaq 100 futures NQc1
were down 0.4% and S&P 500 futures ESc1 were 0.5% up.
The market focus is now on U.S. payrolls due at 1230 GMT,
which could be a selling trigger if an expected slowdown in
hiring is deeper than forecast. "I don't think a huge number of investors will be adjusting
their positions ahead of the U.S. payroll data but because of
yesterday's sell-off there will be a bit more sensitivity to the
data," said James Athey, investment director at Aberdeen
Standard Investments.
"U.S. jobs data has been pretty consistently awful in a big
picture sense. Fundamentally, there is nothing that can happen
in payrolls that can tell you much more about the trajectory of
the economy."
Foreign exchange markets were on edge at the possibility and
a safety bid helped the dollar =USD cling to gains that have
it headed for its best week in more than two months. FRX/
The euro EUR=EBS , which has fallen from a 28-month peak
above $1.20 on talk the European Central Bank is concerned about
its strength, seems to have eased its slide for now, and last
sat at $1.1852.
The yen JPY=EBS was steady at 106.16 per dollar and bonds
pared what was a pretty modest rise overnight, given the
sell-off in the equity market.
Elsewhere, Turkey's lira weakened for a fifth straight
session to a new record low as pressure rose on the central bank
to tighten credit amid stubbornly high inflation. Benchmark U.S. 10-year bond yields US10YT=RR rose about 3
basis points on Friday, having fallen overnight. US/
German yields stabilised, having fallen the day before on
equity sell-offs.

TECH TUMBLE, BANKS SURGE
Thursday's tumble was the biggest one-day percentage drop on
the tech-focused Nasdaq 100 .NDX since March and the darling
stocks of recent months were hit hardest. .N
Still, the plunge in Apple AAPL.O , Tesla TSLA.O and
Microsoft MSFT.O only wound the Nasdaq .IXIC back as far as
where it sat last Tuesday. It is still up 28% for the year so
far and 73% higher than its March trough.
"No single factor sparked the sell-off," said Kerry Craig,
Global Market Strategist at J.P. Morgan Asset Management, citing
more general worries the rally had run too far, too fast.
"However, this is unlikely to be a repeat of the tech wreck
of the late 1990s, given how much the market and sector have
changed," he added.
In Europe, technology shares .SX8P fell back after limited
tech selling in Asia.
The bank index .SX7P helped offset tech's woes, with
Spanish banks Bankia BKIA.MC and Caixabank CABK.MC both
marking double-digit gains earlier in the session after they
said they were considering a merger to create the biggest lender
in Spain.
In commodity markets, oil was headed for its largest weekly drop
since June amid worries about demand as the U.S. summer driving
season draws to a close.
Brent crude futures LCOc1 were up 0.6% at $44.35 a barrel
and U.S. crude CLc1 was 0.8% higher at $41.69 a barrel. O/R
Gold XAU= added 0.4% as investors sought out the safety of
the precious metal ahead of the U.S. non-farm payrolls data.
GOL/

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