Fresh fears over European banks and talk of a "Greek-style" debt crisis in Hungary pushed stock markets into the red on Friday while the euro hit a new four-year low to the dollar and a record low versus Swiss franc, according to Reuters. Markets had earlier been cautiously higher on expectation that U.S. jobs data would show recovery is gathering pace in the world's largest economy. Analysts expect the data, due at 1230 GMT, to show the highest U.S. jobs growth last month since 1983 at 513,000. , the fifth straight month of gains. Some expect an ever bigger number. But by 1200 GMT MSCI world stocks fell 0.6 percent. European stocks were down 0.6 percent. led by the heavyweight banking sector which was hurt by concern over the derivatives division of French Societe Generale. Societe Generale, which declined to comment on market rumours about losses in its derivatives division, fell 6.3 percent. BBVA and Credit Agricole fell 5 and 3.8 percent respectively. Before the falls started, global equity markets and U.S. Treasury yields had in the past week recovered nearly a quarter of the losses incurred over the previous two months when the European sovereign debt crisis triggered a scramble out of risk. Investors were also spooked again by comments out of Hungary, perceived as the weak link in eastern Europe due to high debt ratios. A spokesman for the Prime Minister said a leader of the newly-elected ruling party had not exaggerated when he had said on Thursday Hungary may face a Greek-style debt crisis. That pushed the forint currency to a one-year low and hit shares in European banks exposed to eastern Europe. "There is fear coming back into the market," said Matthew Brown, sales trader at ETX Capital in London. "There are unsubstantiated rumours of a French bank having derivative losses and there are also comments coming out of Hungary." U.S. futures also reversed their early stronger opening. S&P 500 futures fell 8.6 points. Dow Jones industrial average futures sank 60 points and Nasdaq 100 futures dropped 15.5 points. The optimism over the U.S. jobs is also tempered by the fact that two-thirds of the new jobs are likely to be temporary hires for the U.S. government census. And worries over euro zone growth and banks are likely to continue acting as a check on gains. "If the payrolls figure is good, it'll support stocks on both sides of the Atlantic. But this could be short-lived in Europe, where stimulus plans have not been enough to kick-start growth," said Christian Jimenez, fund manager and president of Diamant Bleu Gestion, in Paris. DOLLAR REMAINS IN FAVOUR The euro plumbed a fresh four-year low against the dollar after the French Prime Minister Francois Fillon said he was not concerned by the euro's decline. The euro fell around half a U.S. cent to $1.2048 according to Reuters data, its lowest level since April 2006. The euro has lost 17 percent from early 2010 highs. Against the Swiss franc the euro dropped to a lifetime low as the Swiss central bank failed to step in to stem its currency's strength. The euro fell as low as 1.3865 francs according to electronic trading platform EBS, its weakest since the single currency's launch in 1999. Fears about tougher funding conditions in Europe and the impact of spartan fiscal policy on growth may keep a lid on the nascent revival in risk taking and keep investors favouring the greenback and U.S. Treasuries. "The dollar continues to attract safe-haven buying on the back of continued concern in the euro zone about sovereign debt and credit market liquidity," said Michael Hewson, analyst at CMC markets.