Global shares mostly fall on caution ahead of a key US employment report

TOKYO (AP) — 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% in early trading to 7,407.73, while Germany's DAX shed 0.6% to 18,467.13. Britain's FTSE 100 dropped 0.5% to 8,203.63. U.S. shares were set to drift lower with Dow futures down 0.3% at 40,691.00. S&P 500 futures fell nearly 0.7% 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% to finish at 36,391.47. Australia’s S&P/ASX 200 rose 0.4% to 8,013.40, while South Korea’s Kospi slipped 1.2% to 2,544.28. The Shanghai Composite shed 0.8% 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 3 cents to $69.12 a barrel. Brent crude, the international standard, added 4 cents to $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 $1.1111, little changed from $1.1112.

___

AP Writer Stan Choe contributed. Yuri Kageyama is on X: https://x.com/yurikageyama