* MSCI world equity index down 0.9 percent
* Debt woes overwhelming better U.S. jobs data
* Sterling hits 1-yr low vs dollar before rebounding
By Natsuko Waki
LONDON, May 7 (Reuters) - World stocks held near a three-month low on Friday despite strong U.S. job data and the euro traded close to a one-year trough, weighed down by persistent fears over the euro zone debt crisis.
The better-than-expected jobs figures, showing the U.S. economy added 290,000 non-farm payroll jobs in April, did not give lasting support to risky assets. [nN06115059]. U.S. stocks opened lower and oil prices erased gains.
Sterling, which is also sensitive to risk aversion, bounced off an earlier one-year low against the dollar after comments from Liberal Democrat leader Nick Clegg lessened the risk of a political stalemate and ratings agencies said Britain's AAA status was not under threat from the election.
Wall Street was set for a modestly higher open after the Dow suffered its biggest ever intraday point drop on Thursday. Concerns about the euro debt woes persisted as investors feared further escalation in the crisis would hit growth and sentiment.
"It certainly didn't disappoint on the number of new jobs created but I guess the question now is: is the overhang from the stock market going to influence it more than the bond performance given the payroll data," said Bill Schultz, chief investment officer at Mcqueen, Ball & Associates at Bethlehem in Pennsylvania.
"It's amazing that you could say the jobs report may not be the big mover on a Friday of a jobs report number. I think we're watching overseas and what's going on in the equities market.
The MSCI world equity index <.MIWD00000PUS> fell 0.8 percent, having hit its lowest level since February. The index is on track to post its biggest weekly loss since November 2008.
World stocks have erased all of this year's gains to stand down 4 percent on the year.
The FTSEurofirst 300 index <.FTEU3> fell 1.2 percent, after
hitting levels not seen since early February earlier. U.S. stock
futures rose around 0.5 percent
Fund tracker EPFR Global said Europe equity funds saw more than $2 billion in net outflows in the week to May 5, the most in a year.
Emerging stocks <.MSCIEF> fell 1.5 percent.
The pound fell as low as $1.4478
However, Clegg said he believed the larger opposition Conservative party should try to form the next government. His comments eased worries that a stalemate could derail any quick plans to tackle the British public deficit and could prompt credit agencies to downgrade Britain from its AAA status.
Ratings agency Moody's said the election outcome was no direct threat to Britain's triple-A status and Standard & Poor's said its views on the country's rating was unchanged.
U.S. crude oil
Bund futures
EURO WOES
The euro bounced off the previous day's 14-month lows of
$1.2510
Greece took a step closer to receiving rescue funds after its parliament approved a 30 billion euro austerity bill late on Thursday and the French Senate approved France's contribution to the European Union aid package. [ID:nLDE64522A] [ID:nLDE64602I].
"It's very difficult to see how markets can draw a line under Greece, and they will keep coming back to the issue of Greek solvency," said Adam Cole, global head of FX strategy at RBC Capital Markets.
The dollar <.DXY> fell 0.15 percent against a basket of major currencies.
(Editing by Jason Webb)