📆 Friday, February 7
► European markets held steady on Friday as investors braced for the highly anticipated US nonfarm payrolls report, which is expected to provide crucial insight into the Federal Reserve’s interest rate trajectory. The Stoxx 600 remained flat, having hit a record high on Thursday. Germany’s DAX traded flat, as trade data showed an improved surplus of €20.7B in December. France’s CAC 40 edged 0.15% down weighed down L'Oréal dropping 2.6% following yesterday’s weaker-than-expected earnings report. France recorded a €3.9B trade deficit for the month, which was better than expected. Meanwhile, the UK’s FTSE 100 declined slightly (- 0.2%), as investors awaited the impact of the Bank of England’s latest policy stance. In corporate news, Henkel announced the sale of its North American retail brand business.
► US stock futures are in wait-and-see, with S&P 500 and Nasdaq 100 futures trading near flat, following Amazon’s disappointing after-hours earnings report, which showed weaker-than-expected profit guidance for Q1. Investors are cautious ahead of the nonfarm payrolls report, expected to show 175,000 jobs added in January, down from December’s 256,000. The report will be closely scrutinized for signs of labor market cooling, which could impact Federal Reserve rate cut expectations. The 10-year yield remained near its lowest level of 2025. Separately, Treasury Secretary Scott Bessent reaffirmed the administration’s commitment to a “strong USD” policy, dismissing any potential adjustments to debt issuance strategies.
► Asia-Pacific markets ended mixed, with China leading gains as optimism around AI stocks and easing trade war concerns lifted sentiment. The Shanghai Composite surged 1.01%, while the Shenzhen Component gained 1.76%, both reaching their highest levels in over a month. Hong Kong’s Hang Seng rose 1.16%, marking a two-month high, driven by enthusiasm surrounding Chinese AI startup DeepSeek. Japan’s Nikkei 225 fell 0.6%, snapping a three-day winning streak, as the JPY strengthened past 152/USD, reaching a two-month high amid growing expectations of Bank of Japan rate hikes.
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