Shares, euro fall as Europe worries mount

Top European shares opened down 0.7 percent, the euro retreated to below $1.25 after a two-week high on Thursday, and Brent crude dipped $1.65 to $98.30 a barrel.

The lack of a clear signal from Federal Reserve Chairman Ben Bernanke on imminent quantitative easing at its June 19-20 meeting in testimony to Congress on Thursday overshadowed what had been a positive reaction in world financial markets to a Chinese interest rate cut.

"I think the Fed is likely to act this month and is currently in the midst of making some political adjustments, while the effect of China's easing aimed at supporting its growth will gradually sink in and help resources-related assets and currencies," said Tetsuro Ii, president of Commons Asset Management.

MSCI's world equity index was down 0.5 percent at 299.65, but it is still set to post the best week since late January, due largely to the belief that central banks will be forced into action by slowing economic growth.

Flagging demand from the euro zone caused a big drop in German exports and imports in April, trade figures on Friday showed, while a deluge of May Chinese data due over the weekend is expected to paint a grim picture.