Euro, shares recover slightly from ECB disappointment, jobs data awaited

LONDON: European shares and the euro staged a slight recovery on Friday from a big selloff provoked by the European Central Bank's failure to satisfy investors' hopes of swift action to tackle the debt crisis.
The
market's attention is likely to switch temporarily from central bank
policy to the outlook for growth, with July U.S. non-farm payrolls
data, due at 1230 GMT, expected to show job creation running at weak
levels.
"The European crisis may take a temporary backseat
around the U.S. employment release, but it is still the dominant issue
facing global markets," Barclays Capital said in a note.
The
FTSEurofirst 300 index <.FTEU3> of top European shares was up 0.1
percent at 1,056.55 points after losing 1.2 percent on Thursday when
investors were disappointed by the outcome of the ECB's latest policy
meeting.
The ECB kept rates unchanged and dashed hopes of any
immediate action to ease the borrowing costs of Spain and Italy by
indicating it may resume buying bonds but only under conditions that
would delay any move until at least September.
In reaction to
the announcement, Spanish 10-year bond yields were up 14.5 basis points
on Friday at a crippling 7.37 percent, while equivalent Italian yields
had gained 9 basis points to 6.43 percent.
The euro was under
pressure but traded around $1.22, up 0.15 percent, having fallen nearly
three cents to $1.2133 on disappointment over the ECB's decision. -
Reuters