GLOBAL MARKETS-Europe shares, periphery bonds rise before ECB meeting
* Portugal bond yields ease back to 7.3 percent, ECB in focus
* European shares recover previous days losses
* Euro edges lower
LONDON, July 4 (Reuters) - European bond and stock markets were firmer on Thursday as investors put concerns about Portugal's political turmoil to one side ahead of the ECB and Bank of England's monthly meetings later in the day and Friday's key U.S. jobs report.
Portuguese bond yields fell below 7.3 percent, while Italian and Spanish bond markets were quiet following Wednesday's sharp selloff as the focus fell squarely on Frankfurt, where the European Central Bank meets.
Economists don't expect any policy moves by the ECB, or by the Bank of England which holds its first meeting under new governor Mark Carney, but expect to hear some calming words to reassure markets rattled by Portugal's troubles and the U.S. Federal Reserve's plans to begin winding up its stimulus.
"There is a general consensus that the ECB will not touch rates or announce any new additional measures although personally I expect Draghi to be a little more dovish than at the last meeting," said UniCredit interest rate strategist Luca Cazzulani.
"Focus on Portugal is pretty high but there has been a limited spill over into Spain and Italy so far."
With U.S. markets closed for the Independence Day holiday and investors also keeping positions tight ahead of U.S. jobs data on Friday, the risk was that any surprise moves by the central banks or in Portugal, could have a heavily amplified market impact.
European shares started what was expected to be a choppy day with a 0.9 percent rebound, as markets in London, Frankfurt and Paris wiped away all of the previous session's losses.
In the currency market, the euro eased back to $1.2988 as traders awaited the ECB's 1145 GMT rate decision and 1230 GMT news conference, while the dollar sold off against the yen ahead of the U.S. holiday.