Stocks, Bonds, and Dollar Fluctuate Ahead of US Jobs Report

Stock, bond, and dollar markets exhibit limited movement as traders anticipate the release of the highly influential US monthly jobs report, which will potentially influence interest rate decisions. Amazon.com Inc. shares decline in after-hours trading due to a less-than-expected outlook.

Key Market Updates

- S&P 500 futures marginally fluctuate, with the index poised for a weekly gain of 0.7%.
- Treasury 10-year yields remain steady at 4.43%.
- European stocks are on track to extend their recent rally, marking the seventh consecutive week of gains and the longest positive streak since March 2023.
- The US jobs report is forecast to indicate a rise of 175,000 new positions in January, following increases exceeding 200,000 in the preceding two months.
- Market participants will closely monitor revisions to job growth data for the 12-month period ending in March 2023, with economists anticipating a reduction reflecting a cooling labor market.

Market Reactions

Florian Ielpo, head of macro research at Lombard Odier Investment Managers, suggests that a more positive jobs report could provide a boost to the stock market, which has faced lukewarm earnings results. However, robust job growth could raise concerns about inflation, reigniting the narrative on rising prices.

Porsche AG shares experience a decline following the company's announcement of an €800 million impact from its lineup revamp. L'Oreal SA faces a drop in sales, as a decline in Chinese demand offset an increase in the US.

US Treasury Secretary Scott Bessent reiterates support for a strong dollar and dismisses plans to modify the government's debt-issuance strategy. President Trump has previously expressed concerns about dollar strength, asserting that it makes US products more expensive abroad.

Key Events

- US nonfarm payrolls, unemployment, and University of Michigan consumer sentiment data are scheduled for release on Friday.
- Fed officials Michelle Bowman and Adriana Kugler will deliver speeches on Friday.

Market Movements

Stocks
- Stoxx Europe 600 remains largely unchanged at 9:17 a.m. London time.
- S&P 500 futures rise 0.1%.
- Nasdaq 100 futures experience minor changes.
- Futures on the Dow Jones Industrial Average increase by 0.1%.
- MSCI Asia Pacific Index gains 0.2%.
- MSCI Emerging Markets Index rises 0.6%.

Currencies
- Bloomberg Dollar Spot Index shows minimal movement.
- Euro rises 0.1% against the US dollar, trading at $1.0395.
- Japanese yen declines 0.3% to 151.81 per dollar.
- Offshore yuan remains stable at 7.2888 per dollar.
- British pound gains 0.2%, reaching $1.2466.

Cryptocurrencies
- Bitcoin increases by 0.6% to $97,349.89.
- Ether climbs 1.1% to $2,739.2.

Bonds
- Yield on 10-year Treasuries holds steady at 4.43%.
- Germany's 10-year yield decreases two basis points to 2.36%.
- Britain's 10-year yield falls two basis points to 4.47%.

Commodities
- Brent crude witnesses a rise of 0.8%, reaching $74.84 per barrel.
- Spot gold exhibits a gain of 0.4%, trading at $2,867.81 an ounce.