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1 Futures Steady Ahead of US Jobs Data, Tariff Reprieve

European stocks head for 7th weekly gain

Yen at two-month high up on rate hike bets

Gold constant near record peak

By Amanda Cooper

LONDON, Feb 7 (Reuters) -

U.S. stock futures steadied on Friday ahead of U.S. payrolls data, with investors carefully optimistic that the world may avoid a full-on trade war, while the possibility of more rate hikes in Japan this year briefly sent the yen towards two-month highs.

In a week that started with U.S. President Donald Trump beginning a trade war and whipping up market volatility, financiers have been careful of making any major relocations, considered that he followed through on his hazard to impose duties on China while granting Mexico and visualchemy.gallery Canada a one-month reprieve.

The necessary U.S. tasks report for January is due ahead of the Wall Street open. Economists anticipate to see 170,000 employees contributed to nonfarm payrolls last month, but provided the possible distortions from spells of winter and the California wildfires, the range of forecasts is large.

"The focus for the monetary markets in current weeks has been very much on Trump and his economic policies, in specific on trade, but today there is the potential for the tasks information to affect Fed rate expectations," Derek Halpenny, a currency strategist at MUFG, said.

"A pretty big divergence from the consensus is still most likely required to shift expectations especially however extreme weather at this time of the year has in the past led to greatly weaker NFP readings and weather condition could impact today ´ s report," he said.

Futures on the Nasdaq and S&P 500 were trading mainly consistent on the day, while shares of

Amazon

insinuated premarket trading on the back of

weakness

in the retailer's cloud system.

In Europe, the STOXX 600 headed for a seventh straight week of gains, trading flat on the day after having struck record highs earlier today, following a spate of strong earnings from the likes of Danish weight-loss drugmaker Novo Nordisk, German software business SAP and French lending institution BNP Paribas.

European stocks have actually staged their finest efficiency in a years against Wall Street in the very first six weeks of 2025, however the focus is now on whether those gains can be sustained.

On the Asian market, tech stocks staged a rally, powered by Chinese retail financiers, who have attacked on the AI theme in the wake of home-grown start-up DeepSeek's advancement.

DELICATE CHINA

Beijing's seemingly measured reaction to Trump's tariffs has actually left room for settlements, analysts state, which has assisted repair financier belief.

China's blue-chip stock index closed up 1.3% after touching a one-month high.

"Whilst there is significant noise and uncertainty, we don't see escalating trade tensions as a video game changer in the potential customers for the Chinese market," said James Cook, investment director for emerging markets at Federated Hermes.

Markets are pricing in 43 basis points of reducing this year from the Fed, with a rate cut in July completely priced in, as policymakers remain in no rush to start the again.

The dollar edged up 0.1% against a basket of currencies, having rallied 7% in 2015, as investors priced in a much more aggressive policy stance from the Fed this year, where rate cuts may be rare.

Other main banks are cutting interest rates, while the Bank of Japan is tailoring up for at least another rate hike this year. Strong wage growth information has intensified the chances of tighter monetary policy, which has actually pressed the yen to two-month highs against the dollar.

The yen touched 150.96 per dollar overnight, its strongest level given that December 10, before reducing to leave the dollar up 0.4% on the day at 152.155.

Sterling reversed earlier losses to rise 0.1% to $1.2449, having dropped 0.5% on Thursday as the BoE cut interest rates and slashed its 2025 UK development projection.

In commodities, oil edged up, while gold steadied above $2,800 an ounce, near to tape-record highs.

(Additional reporting by Ankur Banerjee in Singapore