Europe Stocks, US Futures Steady Ahead of Payrolls
European stocks and US equity futures were steady ahead of highly anticipated US jobs data, which will help illuminate the path ahead for interest rates.
The Stoxx Europe 600 and S&P 500 contracts were little changed. Shares in Amazon.com Inc. fell in after-hours trading following earnings results that showed projected profits for the current quarter below analysts’ estimates. Treasury yields ticked higher.
The muted moves underscored a lack of direction ahead of US nonfarm payroll figures due later Friday, which will refocus traders away from the drama over tariffs that rattled financial markets earlier in the week. The data will shed light on the health of the economy and inform Federal Reserve monetary policy.
The jobs report is expected to show 175,000 new roles added to the US economy. Separate jobs data released Thursday showed initial jobless claims picked up while labor productivity remained robust. In addition to the employment print Friday, Wall Street will be closely watching a revision to job growth. Economists predict that will be substantial, but probably not as bad as initially estimated.
Fed Chair Jerome Powell said last week officials want to see more progress on inflation and would be looking for “serial readings” showing price pressures moving in the right direction. For now, traders still see the Fed’s next move as a cut — although likely not until mid-year. Treasury yields hit 2025 lows this week.
Elsewhere, Treasury Secretary Scott Bessent said that his department is conducting outreach to major holders of government securities to get a better picture on their thoughts on the federal debt limit. Bessent also said he favors a strong dollar and has no plans to alter the government’s debt-issuance plans.
Source : Bloomberg
