HK stocks set for strongest weekly performance in 4 months
Yen at 2 month high up on rising bets on rate walkings this year
Gold consistent near record peak, oil set for third weekly drop
By Ankur Banerjee
SINGAPORE, Feb 7 (Reuters) - Global stocks meandered on Friday ahead of crucial U.S. payrolls information as financiers thought about potential customers that a wider trade war could be avoided, while the yen struck its greatest in nearly two months on increasing chances of more rate walkings in Japan this year.
In a week that began with U.S. President Donald Trump kicking off a trade war, investors have actually been hesitant in making major relocations as threatened tasks on China were implemented.
Beijing's measured tit-for-tat reaction has left room for settlements, analysts state, and that has permitted traders to concentrate on the AI theme in China in the wake of home-grown start-up DeepSeek's development.
European futures pointed to a subdued open after the pan-European STOXX 600 index closed at a record high on Thursday on the back of robust business profits.
European stocks have actually staged their finest performance in a decade against Wall Street in the first six weeks of 2025, however focus is now on whether those gains can be sustained.
Eurostoxx 50 futures were down 0.41%, while FTSE futures fell 0.39%. DAX futures relieved 0.21%.
Futures for Nasdaq and S&P 500 were down about 0.2% as shares of Amazon slipped in extended trading over night on weakness in the retailer's cloud computing unit and soft forecast.
In Asia, Hong Kong's Hang Seng Index struck a three-month high, poised for larsaluarna.se a 4% rise in the week, its strongest weekly by DeepSeek-led AI bets.
China's blue-chip stock index was 0.4% higher after touching a one-month high leaving MSCI's broadest index of Asia-Pacific shares outside Japan at its greatest given that mid-December.
"Whilst there is considerable sound and uncertainty, we wear ´ t see intensifying trade stress as a game changer in the potential customers for the Chinese market," said James Cook, financial investment director for emerging markets at Federated Hermes.
"China's larger issue is not Trump however the domestic economy."
On the economic front, jobless claims, layoffs and links.gtanet.com.br labour costs/productivity supplied a beginning to Friday's keenly awaited January work report, with the information likely to show the effect of wild fires in California and winter across much of the nation.
Nonfarm payrolls are expected to have increased by 170,000 jobs last month after rising 256,000 in December, a Reuters survey of economic experts showed.
"Markets might face some volatility around the information if it beats expectations, but it will not change the path of the FOMC policy as more data will be needed," said Anderson Alves, a trader with ActivTrades.
Markets are pricing in 43 basis points of relieving this year from the Fed with a rate cut in July fully priced in as policymakers remain in no hurry to begin the rate-cutting cycle again.
While political uncertainties kept financiers wary, fears have relieved that Trump's method to tariffs could escalate into a worldwide trade war.
RISING YEN
The Japanese yen has been on a tear today buoyed by safe-haven flows as well as increasing expectations of the Bank of Japan increasing rates of interest this year, with markets pricing in 34 basis points of walkings for the year.
The yen touched 150.96 per dollar in early trading, its greatest level since December 10 but was last a little weaker at 151.71. The currency is headed for an over 2% rise against the dollar this week, its strongest weekly efficiency since late November.
Sterling was 0.1% lower at $1.24255 after dropping 0.5% on Thursday as the BoE cut rate of interest by 25 basis points however alerted it would beware moving forward, in the face of a potential inflation uptick and geopolitical worries.
Oil rates rose marginally on Friday but were on track for a 3rd straight week of decline.
Gold prices steadied on Friday near record-high levels and were headed for their 6th successive weekly gain driven by safe-haven flows.
(Reporting by Ankur Banerjee
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Stocks Wobble as Traders Eye United States Payrolls Data, Yen At 2 month High
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