Europe Stocks, US Futures Steady Ahead of Payrolls: Markets Wrap
(Bloomberg) — 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.
“For markets, though, the report is likely to be a case of ‘good news is good news’, or vice versa, with a focus on the underlying economic story, as opposed to any potential policy implications,” said Michael Brown, senior research strategist at Pepperstone group Ltd.
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.
In commodities, gold rose after retreating from a record high Thursday. Oil also edged higher after falling Thursday as Trump’s renewed pledge to drive down the price of crude overshadowed his push for tighter Iranian sanctions.
Key events this week:
- US nonfarm payrolls, unemployment, University of Michigan consumer sentiment, Friday
- Fed’s Michelle Bowman, Adriana Kugler speak, Friday
Some of the main moves in markets:
Stocks
- The Stoxx Europe 600 was little changed as of 8:04 a.m. London time
- S&P 500 futures were little changed
- Nasdaq 100 futures were little changed
- Futures on the Dow Jones Industrial Average were little changed
- The MSCI Asia Pacific Index rose 0.2%
- The MSCI Emerging Markets Index rose 0.6%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.0391
- The Japanese yen fell 0.3% to 151.83 per dollar
- The offshore yuan was little changed at 7.2899 per dollar
- The British pound rose 0.1% to $1.2450
Cryptocurrencies
- Bitcoin fell 0.1% to $96,707.71
- Ether rose 0.2% to $2,714.12
Bonds
- The yield on 10-year Treasuries advanced two basis points to 4.45%
- Germany’s 10-year yield was little changed at 2.38%
- Britain’s 10-year yield advanced one basis point to 4.50%
Commodities
- Brent crude rose 0.7% to $74.80 a barrel
- Spot gold rose 0.3% to $2,864.72 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Winnie Hsu and Jan-Patrick Barnert.
©2025 Bloomberg L.P.
