By Veronica Brown LONDON (Reuters) - World share prices struggled on Friday, while euro zone government bonds rose as investors tried to position themselves for key jobs data that is expected to paint a stark picture of a fast-deteriorating U.S. economy. Global stocks, as measured by MSCI's all-country index, were down almost half a percent on the day. Currency market participants were reticent to move the U.S. dollar .DXY out of narrow ranges after significant interest rate cuts on Thursday from the euro zone, Britain, Sweden, New Zealand and Denmark put it on the defensive. With the latest round of monetary easing aimed stimulating growth out of the way, investors were looking toward U.S. non-farm payrolls with something akin to dread. Economists expect the data, due at 1330 GMT (8:30 a.m EST), to show 340,000 jobs were shed in November. Such a reading would mark the biggest monthly drop in more than two decades. "We're having to get used to these traumatic releases and it's easy to forget the sheer scale of the destruction of the jobs and labor market," Rabobank markets strategist Jeremy Stretch said. Bond buyers emerged in anticipation of a weak U.S. payrolls reading. The Bund future was 28 ticks up at 123.62 versus Thursday's settlement close, having earlier moved up to within a point of the 124.91 record high struck on Thursday. Two-year yields were down around two basis points at 2.15 percent, while 10-year yields were lower on the day at 3.06 percent. "Today, the bond market will retain the view that the economic environment is poor, that the global economy is weak ... and that inflation is no longer a concern," said Rene Defossez, strategist at Natixis in Paris. "The environment is in favor of bonds. You have all the ingredients for a bull market," he said. SHARES HEAD SOUTH European stocks felt the pinch of uncertainty and extended early losses to fall 1.5 percent in early trade as commodity shares tracked weaker industrial metal and crude oil prices. Bank shares also slipped. "The markets are trying to evaluate how deep, how long and how extended the contraction and consumer demand would be," said Jonathan Lawlor, head of research firm Fox-Pitt, Kelton. "And consumers will only start borrowing, purchasing and basically driving the economy when they are more comfortable in their job security, for example," he added. In currency markets, the euro was steady at $1.2782, while the dollar was down 0.2 percent against the yen at 91.96 yen. (Additional reporting by Jamie McGeever, Naomi Tajitsu and Atul Prakash in London) (Reporting by Veronica Brown; Editing by Andy Bruce)

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