World markets – Wall Street regains its balance before the US wage bill

Wall Street headed for a firmer start on Friday, although U.S. payroll figures ahead of the opening bell will likely set the tone for the final session of a first week of roller coaster trading in 2022 which saw new highs followed by massive sales.

Oil was heading for its best weekly gains since mid-December, fueled by supply worries amid growing unrest in Kazakhstan, where an internet shutdown affecting the global computing power of the bitcoin network helped push drop the cryptocurrency to its lowest level since September.

S&P 500 e-mini and Nasdaq stock futures were firmer ahead of nonfarm wage data at 13:30 GMT.

A meteoric start to 2022 was reversed on Wednesday after minutes from the December Fed meeting signaled the central bank may have to hike interest rates sooner than expected.

Some Fed policymakers are also keen to reduce the central bank’s more than $ 8 trillion balance sheet and raise rates to quell decades-high inflation, the minutes said.

Wall Street stabilized Thursday night, although ING Bank analysts said the minutes were still pouring into the markets, pushing bond yields higher, hurting growth stocks and keeping the dollar reasonably well supported.

“We have nonfarm jobs today and will that have an effect on rate hike expectations? I don’t think it will, ”said Michael Hewson, chief market analyst at CMC Markets. “The Fed is about to start gradual and incremental rate hikes and the key question will be how well the markets allow them to fare and that will largely depend on the forecast.”

Non-farm payrolls likely increased by 400,000 jobs last month after rising 210,000 in November, according to a Reuters survey of economists.
Goldman Sachs said it expects a rise of 500,000 above consensus.

The MSCI All Country stock index was slightly firmer at 744.73 points, although down 2% from Tuesday’s record. In Europe, the STOXX index was down slightly to 487 points, also down about 2% from Tuesday’s record.

Eurozone inflation unexpectedly rose to 5% last month from 4.9% in November, a record for the monetary bloc, although unlike the Fed, the European Central Bank says prices will ease enough this year to avoid rate hikes.

Eurozone economic sentiment has fallen more than expected as the Omicron variant of the coronavirus sweeps across Europe.

Asian stocks mostly rose on Friday, breaking two days of losses.
MSCI’s largest Asia-Pacific ex-Japan stock index climbed 0.7%, boosted by gains in Australia where the local benchmark climbed 1.3%, led by bank stocks. Japan’s Nikkei has changed little.

An index of Hong Kong-listed mainland real estate stocks jumped 4.6% on media reports that Chinese policymakers are considering excluding debt accumulated on the acquisition of distressed assets when valuing the market. Marlet. compliance with the debt ratio.

Investors should adjust to “attractive and cheaper” Asian stocks early in the year, said Jim McCafferty, co-head of APAC equity research at Nomura.
“With rates set to rise, from a global risk diversification perspective, investors are likely moving their money from US markets to Asian markets, especially China, as they are increasingly independent of what the United States, “he said.

US Treasury yields paused, having risen sharply this week following the Fed minutes.
The benchmark 10-year Treasury yield was at 1.7266% for the last time, rising to 1.7530% overnight, its highest since April 2021 and up sharply from its 2021 close of 1, 5118%.

The dollar is expected to post strong weekly gains, hitting a five-year high against the yen at 116.35 on Tuesday, hovering around 115.78 on Friday.
Oil prices have recovered, which some analysts have linked to news of Russian paratroopers arriving to quell unrest in Kazakhstan, although production in the OPEC + producing country remains largely unchanged so far.

Brent crude futures rose 0.5% to $ 82.54 a barrel, and US crude rose 0.6% to $ 79.89.

Spot gold was $ 1,792 an ounce, slightly firmer the day after hitting a two-week low of $ 1,788.25 on Thursday as rising US Treasury yields hurt the market. demand for non-interest bearing metal.

Bitcoin fell 1.7% to around $ 42,347 after hitting its lowest level since late September, as hawkish minutes from the Fed also sapped appetites for riskier appetites.

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