Euro services dip affirms sombre economic mood

By Tom Bergin and Tomasz Janowski

LONDON/SINGAPORE (Reuters) - Financial markets ended the week on a sober note after U.S. jobs data jolted sentiment about the potential for economic recovery.

Euro zone PMI data released on Friday reinforced a view created by bigger than expected U.S. job losses in June that the global economy is still struggling to pull out of recession.

European and Asian stocks fell, mainly on Thursday's U.S. jobs data, although markets were quiet because of the U.S. Independence Day holiday.

Government debt prices and the U.S. dollar rose, reflecting heightened risk aversion.

"Payrolls were a wake up call," said Jacques Henry, analyst at Louis Capital Markets, in Paris. "The data showed that the economic recovery remains fragile and more downbeat data is to be expected, particularly on the jobs front."

The euro zone Services Purchasing Managers Index fell slightly in June to 44.7 from 44.8 in May, data provider Markit said on Friday.

A bigger-than-expected 0.4 percent month-on-month drop in euro zone retail sales in May added to concerns that the world's economy is not yet out of the woods.

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