On Friday most European stocks fell, with the benchmark Stoxx Europe 600 Index snapping two days of gains, as investors awaited the monthly US jobs report. Asian shares rose, while US index futures retreated.

The Stoxx 600 slipped 0.1% during morning trading. in London, erasing an earlier advance of as much as 0.7%. Three stocks fell for every two that rose.

The benchmark measure is still headed for a weekly rally of 1.7% amid speculation policy makers will agree to shield banks from the crisis and as the Bank of England expanded its bond-purchase program.

“It’s not overall positive, but also not as negative as some investors think,” said Markus Steinbeis, head of equity portfolio management at the Unterfoehring, Germany-based unit of Pioneer Investments KGmbH, which oversees about $221 billion globally. “There are signs policy makers are aware of problems and taking action so it should help stabilize the market. In the long term, there are still lots of problems around that should put pressure on the market at the end of this year and the beginning of next year.”

The European Central Bank said yesterday it will reintroduce yearlong loans, giving banks access to unlimited cash through January 2013. The central bank will also resume purchases of covered bonds to encourage lending. At the same time, the European Commission is pushing for a coordinated capital injection into banks and German Chancellor Angela Merkel said policy makers “shouldn’t hesitate” if it turns out financial institutions are undercapitalized.

Asian stocks rose, sending a regional benchmark index toward its biggest two-day gain in two years, as optimism European officials will protect banks from the region’s debt crisis boosted the earnings outlook for lenders and exporters.