LONDON, July 8 Reuters European shares edged higher on Friday and were set for a small weekly gain as investors waited for U.S. jobs data to indicate the health of the world39;s biggest economy, while recession fears receded slightly.

Comments by U.S. Federal Reserve policymakers and news of Chinese fiscal stimulus on Thursday had improved sentiment, analysts said, but this was tempered by news of the shooting of former Japanese prime minister Shinzo Abe, who died of his injuries on Friday.

Fed Governor Christopher Waller called recession fears overblown, while St. Louis Fed Bank President James Bullard said he saw a good chance of a soft landing for the economy. 

But Asian shares gave up some of their gains and the safehaven Japanese yen rose after news that Abe, Japan39;s longestserving leader,had been shot while campaigning for a parliamentary election.

Abe stepped down in 2020 citing ill health, but he has remained a dominant presence over the ruling Liberal Democratic Party LDP, controlling one of its major factions.

The longerterm impact of the shooting on markets was unclear, said Guillaume Paillat, multiasset portfolio manager at Aviva Investors, adding that he did not think it would impact Japan39;s elections this weekend.

At 1059 GMT, the MSCI world equity index, which tracks shares in 50 countries, was flat on the day but set for a 1.5 weekly gain overall.

Europe39;s STOXX 600 was up 0.1, while France39;s CAC 40 was 0.6 higher and Germany39;s DAX was up…