Rising global stock markets, buoyed by hopes central banks will end aggressive interest rate hikes, hit headwinds on Friday after weak profits from U.S. tech giants and ahead of key U.S. jobs data.
MSCI’s world equity index fell 0.2 percent but remained near its highest level since August after a sharp rally in recent weeks on hopes that central bank rate hikes are coming to an end.
Wall Street stock futures fell sharply, with 2% lower in Wall Street contracts. Nasdaq 100 by the disappointing results of Google, Apple and Amazon. The S&P 500 futures subtracted 0.9%.
The pan-European index STOXX 600 It lost 0.6%. The performance of the German 10-year bond It gained 2 basis points (bps) to 2.097%, after suffering its biggest drop since 2011 on the eve due to the advance in the price of debt.
During the day the non-farm payrolls report of the United States will be known, a data closely followed by market operators.
“If we see a reduction in net job creation, the Fed could raise rates once again by 25 basis points and that would be the end of the cycle,” said Willem Sels of HSBC bank.
In currency markets, the euro extended its losses to $1.0888, moving further away from Thursday’s 10-month high of $1.1033.
Sterling fell to $1.2185, its lowest in more than two weeks, after falling 1.2 percent in the previous session.
This helped the dollar recover most of its post-Fed losses and Dollar Index It traded at 101.94 units, far from its nine-month low of 100.80.
Treasury yields were stable. The return on ten-year notes was unchanged at 3.96%, while that on two-year papers, which increases with traders’ expectations for higher rates, rose 2 bps to 4.106%.
In the energy markets, the prices of raw They reversed their previous advances and fell 0.6%.