Nonfarm payrolls increased by 134,000 jobs last month, the fewest in a year, likely as Hurricane Florence depressed restaurant and retail jobs.
European shares fell in early trade on Thursday, led by defensive stocks, while banks tracked gains by their USA peers after strong data lifted Treasury yields to their highest since mid-2011.
Jeffrey Gundlach, chief executive of Doubleline Capital, told Reuters yesterday that the 30-year US Treasury bond yield has broken above a multi-year base, which should lead to significantly higher yields for financial markets.
The pan-European FTSEurofirst 300 index lost 0.86 percent and MSCI's gauge of stocks across the globe shed 0.67 percent.
The yield on the benchmark 10-year note US10YT=RR hit a fresh seven-year high of 3.232 percent overnight following data released the previous day that was seen as increasing the odds a Friday payrolls report would also be stronger than expected.
The CBOE Global Markets volatility index .VIX , known as Wall Street's "fear gauge", jumped as high as 15.84 points, its highest since August 15.
A steep sell-off in U.S. Treasury bonds that started midweek and pushed 10-year yields to seven-year highs has weighed on stocks and rippled through bond markets globally.
The Dow Jones Industrial Average advanced 54.45 points, or 0.20 percent, to 26,828.39. The dollar index fell 0.1 percent The euro was up 0.02 percent to $1.1515.
Walking Dead's Scott Wilson 'finished filming season 9' before death
He also appeared in three installments of the children's film series Shiloh , as well as on the CBS crime drama CSI . The veteran actor best known for his role as Hershel Greene on " The Walking Dead " passed away on Friday.
Fears mount over Saudi journalist missing since entering consulate
With no sign of Khashoggi forthcoming, the Post published a blank space where his column would have run in Friday's print edition. In contrast, a Saudi official quoted by Reuters news agency said the journalist was "not in the consulate nor in Saudi custody".
Pentagon sees China as a 'growing risk' to U.S. defense industry
The Vice President supported his claims by citing data from US Intelligence agencies, although, he did not provide any proof for the same.
"This week has been a bit of a bloodbath on the fixed income side of things", said Dean Popplewell, chief currency strategist at Oanda in Toronto. The Japanese yen was little changed versus the greenback at ¥113.89 to the dollar.
Oil prices rose on Friday, two days after hitting four-year highs, lifted by looming US sanctions against Iran's crude exports that are set to start next month.
Fears about Italy's finances pushed Milan stocks down 1.3 percent, while London's FTSE, Frankfurt's DAX and the CAC in Paris were off 0.95 to 1.4 percent.
Twitter dropped 0.5 percent, giving up earlier gains after Greenlight also said it sold its entire stake in the company due to worries about regulatory risks affecting social media companies.
On oil markets both main contracts edged down after serving up yet another sharp rise on Wednesday on the back of comments from US Secretary of State Mike Pompeo and White House National Security Advisor John Bolton regarding Iran that exacerbated worries about a supply hit from the region.
USA crude CLcv1 oil futures rose 0.7 percent to $74.85 a barrel and Brent crude LCOc1 futures gained 0.5 percent to $85.00 a barrel.
Danske Bank fell 2.3 per cent after it discontinued its share buyback programme and said it was in talks with U.S. authorities about non-resident accounts at its Estonian branch, which are at the centre of a $235 billion money laundering scandal. Oil prices slipped from four-year highs, pressured by rising USA inventories and after sources said Russian Federation and Saudi Arabia struck a private deal in September to raise crude output.
The combination of rising oil prices, borrowing costs and a climbing dollar have also been rocking emerging markets, which tend to be vulnerable to all three.