Global shares take a breather ahead of US jobs data in record-breaking week; oil rises after OPEC+ agrees slow supply rise

• Global shares traded narrowly below record highs, buoyed by investor optimism over the rate outlook.
• Key US monthly jobs data later would set the tone for the broader markets, analysts said.

Global shares softened slightly on Friday, after a record-breaking run this week, ahead of the key US monthly employment report. Meanwhile, oil rose after the world's largest exporters shook off international pressure and agreed to only modest supply increases.

S&P 500 futures were up 0.1%, while those on the Dow Jones were flat and Nasdaq 100 futures gained 0.2%. The S&P 500 closed at an all-time high on Thursday, marking its 63rd record close of 2021. The MSCI All-World index fell 0.1%, but sat a whisker below all-time highs struck this week.

Earlier this week, a combination of solid earnings and the Federal Reserve's pledge for "patience" in raising interest rates set the stage for robust equity-market performance. Traders and investors were next awaiting the Bureau of Labor Statistics' monthly non-farm payrolls report, which many hope will reflect resilience in the US economy.

Economists widely expect US non-farm payrolls to have added 450,000 workers in October, up from September's 194,000 increase, which was the weakest reading so far this year.

"It's not a hugely consequential report for the Fed, given that they've already tapered and given that rate hikes remain someway off in the distance, but nevertheless, we can never entirely discount the US jobs numbers," Caxton FX senior market analyst, Michael Brown, said in a morning video summary.

In Europe, the DAX lagged the rest of the regional indices, easing from record highs to trade 0.1% lower on the day, after data showed a surprise contraction in German industrial production in October. The Stoxx 600 was last up 0.1%, while the FTSE 100 gained 0.4%, thanks to the weakness in the pound.

In Asia, Chinese indices fell after shares in Kaisa, another heavily indebted builder, were suspended because of liquidity problems. The Shanghai Composite lost 1.0%, while the Hang Seng fell 1.5%. Tokyo's Nikkei fell 0.6% and Seoul's Kospi lost 0.3%.

The dollar meanwhile held firm, buoyed by the Federal Reserve's well-telegraphed slowing of its asset purchase program, and gained against the peso, the Canadian dollar, and the pound.

"Nonfarm payroll is scheduled for 12:30 GMT today but, although we'd likely need to see a strong divergence from expectations for any meaningful impact given it is just 2 days after the Fed announced tapering," City Index analyst Matt Simpson said.

Sterling lost 0.4% against the dollar, following a loss of 1.4% the previous day after the Bank of England surprisingly left UK interest rates unchanged, making this its largest one-day fall in over a year.

Crude oil rose after the Organization of the Petroleum Exporting Countries and its partners agreed to increase joint production by 400,000 barrels a day, as planned, shunning pressure from President Joe Biden for a more rapid increase to stem energy inflation.

"Net, our bullish view remains unchanged: the oil deficit remains unresolved, the current strength in oil demand remains a near-term tailwind and the increasingly structural nature of the deficits will require much higher long-dated oil prices," Goldman Sachs analysts led by Damian Courvalin said in a daily note.

Brent crude futures were last up 0.4% at $80.88 a barrel, still set for a 0.3% loss this week, while WTI was up 0.8% at $79.44 a barrel.