Market tensions ahead of Friday's key U.S. jobs data kept investors on edge and reluctant to buy into new positions. Wall Street opened flat on Friday after a mixed U.S. payrolls report failed to confirm heightened expectations of a healing labor market. The Dow Jones industrial average was down 0.98 points, or 0.01%, at 11,696.33. The Standard & Poor's 500 Index rose 0.99% points, or 0.08%, at 1,274.84. The Nasdaq Composite Index added 0.55 points, or 0.02%, at 2,710.44.

In Europe, the FTSE 100 index of leading British shares was down 29.83 points, or 0.5%, at 5,989.68 while Germany's DAX fell 18.81 points, or 0.3%, to 6,962.58. The CAC-40 in France was 23.41 points, or 0.6%, lower at 3,881.01.

The dollar rallied on the back of a sharp spike in Treasury yields. That means that holding dollars is more attractive because the returns are potentially greater. By late morning London time, the euro was down 0.2% at $1.2979 while the dollar was up 0.2% at 83.51 yen.

Over recent days, Europe's debt crisis has taken a backseat to developments in the U.S. economy. Governments in Germany, France and Portugal have managed to push through bond auctions fairly easily. However, underlying worries remain, not least in Portugal, which is widely considered to be the country most at risk in joining Greece and Ireland in seeking a financial bailout. The yields on its ten-year bonds have spiked up above 7% towards the levels that forced the previous bailouts. Next week, Portugal is planning to sell more bond, as are Spain and Italy.

Earlier in the day Asia, Japan's Nikkei 225 stock average edged up slightly, about 0.1%, to finish at a fresh eight month high of 10,541.04. Japanese stocks are benefiting from the recent fall in the value of the yen, which has eased the pressures on the country's exporters as they battle for business in the international marketplace. Hong Kong's Hang Seng index lost 0.4% to 23,686.63, while South Korea's Kospi gained 0.4% to 2,086.20.

This article was compiled by Valletta Fund Management Limited, a member of the BOV Group. Valletta Fund Management,

TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Freephone: 80072344. email: [email protected] Internet address: www.vfm.com.mt. Valletta Fund Management Limited is licensed by the MFSA.