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(Bloomberg) — European stocks followed declines in the U.S. and Asia, posting their steepest decline in nearly two months as oil prices soared on concerns about the escalating situation in the Middle East. Traders’ attention on Friday will turn to key US jobs data.
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The Stoxx 600 fell more than 1% and U.S. futures signaled a slight rebound on Wall Street after Thursday’s decline in the S&P 500 index. The 10-year U.S. Treasury bond was little changed, yielding 4.32%. Dollar indicators were also stable.
U.S. non-farm employment data to be released later on Friday is expected to show more than 200,000 new roles added to the economy in March. Further signs of strong economic activity could prompt the Fed to keep interest rates high for an extended period of time.
Brent trades above $91 a barrel as tensions rise in the Middle East as Israel ramps up preparations for possible retaliation by Tehran following Monday’s attack on Iranian diplomatic facilities in Syria. was.
“A direct conflict between Israel and Iran would likely limit oil supplies from the Middle East,” said Matt Maley, chief market strategist at Miller Tabak. No,” he said. This has been the case so far, but it may soon be the case. ”
Minneapolis Fed President Kashkari said Thursday that there may not be a need to cut interest rates this year if inflation stalls. He was one of more than half a dozen central bank officials to speak ahead of the release of the March jobs report. Meanwhile, her Cleveland Fed counterpart Loretta Mester suggested the central bank may be nearing the confidence level needed to start cutting rates in the coming months.
“As always, the monthly jobs report will have the final say,” said Chris Larkin of Morgan Stanley’s E*Trade. He said, “Investors will be looking for a ‘Goldilocks’ number that doesn’t give the Fed a reason to delay rate cuts, but doesn’t suggest that the labor market is in a deep downturn.”
In Asia, the yen continued to rise to a two-week high as Bank of Japan Governor Kazuo Ueda fueled bets on further interest rate hikes by the end of the year. The currency posted its biggest gain against the dollar in nearly a month on Thursday, retreating from levels that traders had predicted would trigger intervention.
This week’s main events:
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Eurozone retail sales Friday
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U.S. unemployment rate, nonfarm payrolls, Friday
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Fed’s Michelle Bowman, Thomas Barkin and Laurie Logan speak on Friday
The main movements in the market are:
stock
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As of 8:06 a.m. London time, the Stoxx European 600 was down 1%.
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S&P 500 futures rose 0.2%
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Nasdaq 100 futures rose 0.2%
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Dow Jones Industrial Average futures rose 0.2%.
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MSCI Asia Pacific Index falls 0.6%
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MSCI Emerging Markets Index falls 0.4%
currency
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Bloomberg Dollar Spot Index little changed
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The euro was almost unchanged at $1.0834.
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The Japanese yen rose 0.1% to 151.18 yen to the dollar.
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The offshore yuan was almost unchanged at 7.2466 yuan to the dollar.
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The British pound fell 0.1% to $1.2629.
cryptocurrency
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Bitcoin fell 1.5% to $66,950.54.
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Ether fell 1.5% to $3,275.27.
bond
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The 10-year government bond yield was almost unchanged at 4.31%.
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Germany’s 10-year bond yield fell 2 basis points to 2.34%.
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UK 10-year bond yield remains unchanged at 4.02%
merchandise
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Brent crude rose 0.6% to $91.16 per barrel
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Spot gold fell 0.3% to $2,283.74 an ounce.
This article was produced in partnership with Bloomberg Automation.
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