GitLab

HK stocks set for greatest weekly performance in 4 months

Yen at two month high on rising bets on rate walkings this year

Gold constant near record peak, oil set for suvenir51.ru 3rd weekly drop

By Ankur Banerjee

SINGAPORE, Feb 7 (Reuters) - Global stocks meandered on Friday ahead of key U.S. payrolls data as financiers considered prospects that a wider trade war might be averted, while the yen struck its greatest in almost two months on increasing chances of more rate walkings in Japan this year.

In a week that started with U.S. President Donald Trump starting a trade war, financiers have been reluctant in making significant moves as threatened tasks on China were implemented.

Beijing's measured tit-for-tat reaction has left space for settlements, experts state, which has actually permitted traders to focus on the AI theme in China in the wake of home-grown start-up DeepSeek's advancement.

European futures pointed to a suppressed open after the pan-European STOXX 600 index closed at a record high on Thursday on the back of robust business revenues.

European stocks have actually staged their finest efficiency in a years against Wall Street in the very first six weeks of 2025, but 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 prolonged trading over night on weak point in the retailer's cloud computing unit and soft projection.

In Asia, Hong Kong's Hang Seng Index struck a three-month high, poised for a 4% increase in the week, its greatest weekly efficiency sustained by DeepSeek-led AI bets.

China's blue-chip stock index was 0.4% greater after touching a one-month high leaving MSCI's broadest index of Asia-Pacific shares outside Japan at its greatest because mid-December.

"Whilst there is substantial sound and uncertainty, we wear ´ t see intensifying trade stress as a video game changer in the prospects for the Chinese market," said James Cook, investment director for emerging markets at .

"China's larger issue is not Trump but the domestic economy."

On the economic front, jobless claims, layoffs and labour costs/productivity supplied a beginning to Friday's keenly awaited January work report, wiki.die-karte-bitte.de with the data likely to show the effect of wild fires in California and cold weather condition across much of the country.

Nonfarm payrolls are anticipated to have increased by 170,000 tasks last month after rising 256,000 in December, a Reuters poll of economic experts revealed.

"Markets might face some volatility around the information if it beats expectations, however it won't alter the course 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 totally priced in as policymakers remain in no hurry to begin the rate-cutting cycle again.

While political uncertainties kept financiers wary, fears have eased that Trump's technique to tariffs might intensify into an international trade war.

RISING YEN

The Japanese yen has been on a tear today buoyed by safe-haven flows as well as rising expectations of the Bank of Japan increasing rates of interest this year, with markets pricing in 34 basis points of hikes for higgledy-piggledy.xyz the year.

The yen touched 150.96 per dollar in early trading, its strongest level considering that December 10 but was last a little bit weaker at 151.71. The currency is headed for asteroidsathome.net an over 2% increase against the dollar this week, its strongest weekly performance 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 but cautioned it would be mindful going forward, in the face of a potential inflation uptick and geopolitical concerns.

Oil rates rose partially on Friday but were on track for a 3rd straight week of decrease.

Gold costs steadied on Friday near record-high levels and were headed for wiki.rolandradio.net their 6th succeeding weekly gain driven by safe-haven flows.

(Reporting by Ankur Banerjee; additional reporting by Stephen Culp, Marc Jones and Alun John; modifying by Shri Navaratnam and setiathome.berkeley.edu Sam Holmes)