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A take a look at the day ahead in U.S. and worldwide markets from Mike Dolan Another projection miss from a U.S. megacap integrates with caution ahead of January's employment report to keep a cover on stocks into Friday's open - with buoyant long-dated Treasuries squashing the yield curve to its flattest for the year.

Just like Microsoft and Alphabet over the previous couple of weeks, Amazon dissatisfied Wall Street late Thursday as concern about cloud computing splashed profits and profit forecasts and sent its stock down 4% overnight.

The current underwhelming outlook from the "Magnificent 7" top U.S. tech companies control an otherwise upbeat S&P 500, with concerns about heavy spends on expert system stimulated again by the development of China's inexpensive DeepSeek design.

The DeepSeek buzz, by contrast, continues to fire up Chinese stocks. They added another 1%-plus earlier on Friday in spite of ongoing concerns about an installing Sino-U.S. trade war and Monday's due date for Beijing's retaliatory tariffs.

But the day's macro occasions will likely take precedence, with the release of the January U.S. employment report and long-lasting revisions of previous job creation.

Job development most likely slowed to 170,000 in January from just over quarter of million the previous month, partially restrained by wild fires in California and winter across much of the nation.

Those distortions add a more complication to the readout, which will consist of yearly benchmark modifications, brand-new population weights and updates to the seasonal adjustments.

The week's sweep of other labor market reports, nevertheless, do indicate some cooling of conditions - with task openings falling, layoffs increasing and forum.altaycoins.com weekly jobless claims ticking greater.

With the Federal Reserve already trying to parse the impact of President Donald Trump's brand-new financial policies, payroll distortions simply cloud the image even further.

And as Fed officials insist they can wait and utahsyardsale.com see for a bit, Fed futures remain trained on 2 more interest rate cuts this year - resuming about midyear.

The Treasury market is more encouraged though - sustaining the early week's sharp drop in 10-year yields into today's tasks report and seeing the 2-to-10 year yield curve compress to the flattest it's remained in 6 weeks.

Helping the long end this week has been reassuring signals from the Treasury's quarterly refunding report that a "terming out" of financial obligation auctions to longer maturities is not yet in the works, as many had actually feared.

Treasury Secretary Scott Bessent has also insisted the new federal government's focus would be on getting long-term rates down rather than pushing the Fed to alleviate too soon.

Reuters analysis reveals Trump has actually placed holds on 10s of billions of dollars in congressionally-approved spending for projects throughout the U.S. that range from Iowa soybean farmers embracing greener practices to a Virginia railway growth.

Bessent also doubled down on his view the administration wishes to retain a "strong dollar" policy. But he colored that with a sideswipe. "What we wear ´ t want is other countries to damage their currencies, to manipulate their trade."

But with the Fed on hold, main banks around the globe continued relieving rates of interest apace today - partly on concerns a trade tariff war will damage their economies.

With a sharp cut in its UK growth projection, the Bank of England cut its policy rate by a quarter point on Thursday - with 2 of its policymakers electing a bigger half point reduction. Sterling weakened at first, but has steadied considering that.

Mexico's main bank also cut its interest rate by 50 basis points on Thursday - stating it might cut by a similar magnitude in the future as inflation cools and after the economy contracted slightly late in 2015.

The European Central Bank, meantime, is expected to release its updated estimate of what it sees as a "neutral" rate of interest in the future Friday.

That is essential as it notifies the ECB debate about whether it needs to cut rates listed below what thinks about neutral to restore the flagging euro zone economy. It's presently seen around 2% - 75bps listed below the standing policy rate.

In thrall to the payrolls release, the dollar index was steady on Friday. Dollar/yen briefly notched a new low for the year, nevertheless, as Bank of Japan tightening speculation simmers.

In Europe, stocks stalled near record highs as the heavy incomes season there .

Banks there have actually a been a standout winner this week and again on Friday. Danske Bank, Denmark's biggest lending institution, prawattasao.awardspace.info was up 7.1% after it posted record annual profits and launch a brand-new share buyback program.

Key developments that must supply more direction to U.S. markets later Friday: * U.S. January work report, University of Michigan February consumer survey, December consumer credit; Canada Jan employment report; Mexico Jan inflation * European Central Bank updates its estimate of "R *" neutral interest rate * Federal Reserve Board Governors Michelle Bowman and Adriana Kugler speak; Bank of England Chief Economist Huw Pill speaks * U.S. corporate profits: Cboe Global Markets, Fortive, Kimco Realty * Japan Prime Minister Shigeru Ishiba sees United States

(By Mike Dolan, editing by XXXX mike.dolan@thomsonreuters.com)