European markets were ending the week on a somewhat downbeat note Friday, with the euro sliding and a cautious mood prevailing across stocks markets, dpa reported. After rising sharply on Thursday amid expectations that Greece would secure the overwhelming backing of creditors for the world's biggest debt restructuring, share trading was subdued Friday as investors mulled over the next steps in Europe's debt crisis, which has now entered a third year. While the blue chip eurozone Eurostoxx 50 was down 0.2 per cent at 2,510 in morning trading, the euro slipped 0.4 per cent to 1.3218 dollars after Athens announced that 85.8 per cent of creditors had signed up to its debt swap and that Greece has averted the threat of an immediate disorderly default. "Overall this debt outcome was broadly as expected," said ING bank economist Padhriac Garvey. However, analysts say the next real test of market sentiment towards Europe's debt crisis is likely to focus on Portugal, amid concerns that Lisbon might be forced to again tap the European Union-led bailout fund. The result was to send Portuguese government bond yields higher on Friday. Portugal was one of three members of the 17-state eurozone that have been forced to turn to the rescue fund to help meet financial commitments. However, the Greek debt deal appears to have helped to ease tensions on government bond markets, which had also been buffeted by Europe's financial crisis. The yields on Italian and Spanish 10-year bonds dropped below 5 per cent in Friday trading. In the meantime, shares in Athens gained 0.5 per cent in morning trading, with stocks in the eurozone's two biggest bourses - Frankfurt and Paris - posting modest gains. The Stoxx Europe 600 index representing Europe's banking sector rose 0.5 per cent after a faltering start to the trading day. Markets were also now waiting for the latest labour market data from the US to be released, later Friday. Asian investors also breathed a sign of relief that Greece had managed to secure the debt deal. Shares in Tokyo finished the day up 1.65 per cent, with stocks in Hong Kong gaining 0.89 per cent and those in Shanghai moving up 0.79 per cent.
