BLBG: Treasuries Erase Drop, Futures Mixed on Jobs Data: Markets Wrap
Treasuries erased losses, while the dollar pared gains as a rebound in hiring came with a slowdown in wage growth. U.S. stock futures remained higher and oil pared losses that took it below $44 a barrel.
U.S. assets showed only muted reaction as investors assess the impact on the Fed’s rate plans of data showing payroll gains rebounded in April by more than forecast while wage growth slowed to 2.5 percent. The Euro Stoxx 600 Index edged higher ahead of French presidential elections on Sunday. Gold climbed from a seven-week low and iron ore fell for a third day.
Investors are looking to today’s jobs report for clues on the pace of U.S. monetary tightening after the Federal Reserve this week played down concerns about slow first-quarter growth, boosting expectations for an increase in June. In Europe, attention is still focused on the French presidential election on Sunday, with centrist Emmanuel Macron predicted to prevail over his anti-euro rival Marine Le Pen.
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Here are key events and data releases due:
The U.S. will report hiring data at 8:30 a.m. in New York. Economists forecast the country added 190,000 jobs last month
A host of Fed officials are due to speak on Friday, including Fed Chair Janet Yellen and her deputy Stanley Fischer
Warren Buffett plans to take more than four dozen questions at his annual investor meeting Saturday, to be live-streamed from Omaha
Voters in France go to the polls Sunday for the second round of presidential elections.
Here are the main moves in markets:
Stocks
Futures on the S&P 500 Index rose 0.1 percent at 8:44 a.m. in New York, after the underlying gauge rose 0.1 percent Thursday.
The Stoxx Europe 600 rose 0.1 percent.
The Shanghai Composite Index was down 0.8 percent at 3,103 after earlier dropping below 3,100. The gauge neared its lowest close this year.
Currencies
The Bloomberg Dollar Spot Index was flat.
The pound was little changed at $1.2929 following a gain of 0.4 percent. Thursday. The yen was steady at 112.49 per dollar.
The euro advanced for the fourth week to trade within reach of $1.10, as France prepares to elect a president.
Commodities
West Texas Intermediate oil fell 0.2 percent to $45.43 a barrel; it tumbled to $43.76 earlier, the lowest since Nov. 15 and first foray below $45 since OPEC agreed to cut output that month.
Iron ore futures were down 6.3 percent after falling 5.3 percent Thursday.
Gold rose 0.3 percent to $1,232.05 an ounce.
Bonds
The 10-year U.S. Treasury yield fell one basis point to 2.34 percent after climbing almost four basis points Thursday. The rate has added eight basis points in the week.
The yield on 10-year German government bonds was little changed at 0.38 percent.