* Investors bracing for U.S. jobs data due 1330 GMT
* Euro steadies, Greek debt crisis developments eyed
* Crude nears 7-week high after China comments on stimulus
By Emelia Sithole-Matarise
LONDON, March 5 (Reuters) - World stocks gained on Friday on
the back of encouraging signs on Greece's ability to finance
itself and better-than-forecast U.S. retail sales, while the
euro inched up against the dollar before U.S. jobs data.
Firmer equities undermined bids for lower risk U.S. and euro
zone government bonds but traders were wary of chasing prices
aggressively with some in the market speculating that forecasts
on the scale of job losses may have been too pessimistic.
Non farm payrolls are the most closely watched figures on
the U.S. labour market though analysts say the February figures
due at 1330 GMT may be difficult to predict after a wave of
blizzards that hit the United States.
The report is expected to show a loss of 50,000 jobs in
February, compared with 20,000 job cuts in January, a Reuters
poll shows.
"The overwhelming focus of the day ahead lies with the US
payrolls report. Weather-related distortions could make this
even more unpredictable than usual," said Nomura analyst Sean
Maloney.
TheMSCI world equity index <.MIWD00000PUS> added 0.3
percent while the FTSEurofirst 300 index <> rose 0.7 on
course for a sixth straight day of gains.
U.S. stock futures <DJc1> <SPc1> edged higher, pointing to a
firmer open on Wall Street ahead of the jobs data.
The dollar was stable versus a basket of currencies at
80.510 <.DXY> but it rose against the yen after a report
suggesting the Bank of Japan was considering further easing
measures []
It ceded some ground to the euro with the single currency
last 0.1 percent up at $1.3590 <EUR=>. The euro has steadied
after dropping to $1.3549 on Thursday as European Central Bank
President Jean-Claude Trichet said a recovery in the euro zone
would be uneven.
GREEK WORRIES
The premium investors demand to buy 10-year Greek government
bonds rather than euro zone benchmark German Bunds fell to 288
basis points from 299 bps in late European trade on Thursday.
But some investors still fret about the longer-term outlook
for the highly-indebted euro zone member, keeping the single
currency on the defensive despite Greece's successful five
billion euro 10-year bond issue on Thursday.
"Greece must borrow more than 50 billion euros to cover
maturing debt and interest payments this year and, given the
debt placement schedule of other European countries, it is still
far from assured that Greece's upcoming bond sales will be
oversubscribed as yesterday's," Barclays Wealth said in a note.
German officials and the chairman of the group of countries
using the euro ruled out any immediate provision of financial
aid for Greece before talks on Friday with Prime Minister George
Papandreou. []
Spot gold <XAU=> traded at $1,134.40 an ounce, up from New
York's close. Volume was thin ahead of the U.S. payrolls data
with key resistance seen at a January high of around $1,150.
U.S. crude oil rose towards $81 a barrel, nearing a
seven-week high after after China signalled it would maintain
its economic stimulus, rekindling hopes for accelerating growth
to drain excess oil supplies. []
(Additional reporting by Ian Chua and Dominic Lau; editing
by Patrick Graham)
