Stock index futures pointed to falls on Friday, ahead of a key labor market report which is likely to confirm the pace of economic recovery is losing momentum.

A Reuters poll showed analysts expect nonfarm payrolls at 8:30 a.m. EDT to show a rise of 150,000 in May, less than the 180,000 forecast before a report on Wednesday showed a sharp slowdown in private job growth last month. The unemployment rate was seen at 8.9 percent.

Shares on Wall Street finished mixed on Thursday, with investors reluctant to make big bets ahead of the payrolls numbers. The S&P 500 <.SPX> and the Dow <.DJI> closed off 0.1 and 0.3 percent respectively, while the Nasdaq <.IXIC> rose 0.2 percent.

Other data set for release include May's U.S. ISM non-manufacturing index at 10 a.m. EDT, which is likely to provide further evidence on the pace of recovery in the world's largest economy.

In company news, Lockheed Martin is willing to outsource some production of its F-35 Joint Strike Fighter to Japanese firms if the country's government decides to buy them as its next mainstay fighter aircraft, an executive at the U.S. company said on Friday.

Molson Coors Brewing Co and Mexico's Grupo Modelo are exploring a joint bid for Australia's Foster's Group Ltd , a source said, amid talk further suitors may emerge for the maker of VB and Cascade beer.

Four people were killed and one was seriously injured in an explosion at an oil refinery in southwest Wales, the plant's owner Chevron Corp said on Friday.

On the economic front, ratings agency Moody's warned on Thursday it would consider cutting the United States' coveted top-notch credit rating if the White House and Congress do not make progress by mid-July in talks to raise the U.S. debt limit.

European shares on the FTSEurofirst 300 <.FTEU3> dipped in early trade, on track to fall for the third straight session.

Short-dated Greek government bond yields and the cost of insuring the country's debt against default fell on Friday as euro zone policymakers appeared to be getting closer to an agreement on a new bailout for Athens.

(Reporting by Harpreet Bhal; Editing by Jon Loades-Carter)