European shares headed for a weaker start on Friday as investors braced for December U.S. payrolls numbers, a key set of data that will help shape the Federal Reserve's interest rate setting committee meeting next month.
Investors have little in the way of fresh corporate news to guide them for the first half of the session until the U.S. jobs data is released at 1330 GMT.
U.S. crude oil prices traded around $45.30 a barrel as an OPEC source told that the producer cartel would consider cutting formal output limits by 1 million to 1.5 million barrels per day at its end-January meeting if U.S. crude prices fall below $40 a barrel.
The dollar's recent strong rebound paused overnight as its short-term fate was seen hanging on the upcoming payrolls figures.
MARKET OUTLOOK
* Financial bookmakers in London expect the FTSE 100 , CAC-40 , and DAX indexes to open down between 4 and 15 points.
* The FTSEurofirst 300 index of leading European shares closed higher on Thursday, leaving it only about 3 points below this month's 2-1/2 year high.
* U.S. stocks ended higher in their first positive finish in 2005, helped by a stronger dollar and December sales figures from retailers.
* U.S. Treasuries edged up on Thursday after a spike in jobless claims stoked fears of another disappointing round of payrolls data later on Friday.
Benchmark U.S. 10-year yields were trading at around 4.27 percent.
Comparable 10-year European government bonds yielded 3.6 percent.
* U.S. crude oil futures were little changed, holding above $43 a barrel despite latest data showing rising stocks of winter heating fuels in the United States.
* The dollar edged lower against the euro and the yen in tight trade ahead of the U.S. jobs data, but dealers said the U.S. currency had not strayed form its recent rebound.
* In Tokyo, the Nikkei average ended down half a percent as caution set in ahead of the U.S. jobs data.
* Other Asian indexes like the Kospi , Hang Seng and Straits Times were mostly higher.
*Gold rose in Asia as the dollar's recent rebound paused.