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A look at the day ahead in U.S. and international markets from Mike Dolan Another projection miss out on 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 resilient long-dated Treasuries squashing the yield curve to its flattest for the year.

Much like Microsoft and Alphabet over the past couple of weeks, Amazon dissatisfied Wall Street late Thursday as issue about cloud computing splashed revenue and revenue projections and sent its stock down 4% over night.

The most recent underwhelming outlook from the "Magnificent 7" top U.S. tech firms control an otherwise upbeat S&P 500, with questions about heavy invests in synthetic intelligence piqued again by the advancement of China's cheap DeepSeek design.

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

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

Job development likely slowed to 170,000 in January from just over quarter of million the prior month, partially restrained by wild fires in California and cold weather condition across much of the country.

Those distortions add an additional complication to the readout, which will include yearly benchmark modifications, brand-new population weights and updates to the seasonal changes.

The week's sweep of other labor market reports, nevertheless, do indicate some cooling of conditions - with job openings falling, timeoftheworld.date layoffs increasing and parentingliteracy.com weekly jobless claims ticking higher.

With the already attempting to parse the impact of President Donald Trump's new economic policies, payroll distortions simply cloud the picture even further.

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

The Treasury market is more urged 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 today has been reassuring signals from the Treasury's quarterly refunding report that a "terming out" of debt auctions to longer maturities is not yet in the works, wiki.whenparked.com as numerous had actually feared.

Treasury Secretary Scott Bessent has likewise firmly insisted the new government's focus would be on getting long-term rates down rather than pushing the Fed to relieve prematurely.

Reuters analysis reveals Trump has placed hangs on tens of billions of dollars in congressionally-approved costs for tasks throughout the U.S. that range from Iowa soybean farmers embracing greener practices to a Virginia railway expansion.

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

But with the Fed on hold, main banks around the globe continued easing rates of interest apace this week - partially on concerns a trade tariff war will compromise their economies.

With a sharp cut in its UK growth forecast, the Bank of England cut its policy rate by a quarter point on Thursday - with two of its policymakers choosing a bigger half point reduction. Sterling compromised initially, however has actually steadied considering that.

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

The European Central Bank, meantime, is expected to launch its upgraded estimate of what it sees as a "neutral" interest rate later Friday.

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

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

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

Banks there have a been a standout winner this week and again on Friday. Danske Bank, Denmark's most significant lending institution, was up 7.1% after it published record yearly profits and release a brand-new share buyback program.

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

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