With a light data calendar in Europe, that leaves the focus on tonight’s U.S. nonfarm payrolls report, where a miss in expectations would only accelerate the risk retreat.
Economists polled by Reuters expect 175,000 jobs to have been added in July, down from the previous month’s 206,000. Eyes will also be on the unemployment rate, which is forecast to hold at 4.1%.
Elsewhere, Japan’s Nikkei was headed for its worst day in more than four years, tracking Wall Street’s slide and as a strengthening yen looked set to weigh on exporters’ profits.
How much further domestic rates could rise even in the face of a weakening economy also clouded the outlook.
The latest yen rally, and in turn the Nikkei’s decline, were triggered by the Bank of Japan’s rate hike on Wednesday, part of Governor Kazuo Ueda’s moves to dismantle his predecessor’s unorthodox ultra-easy policies.
