As Traders Seek Cover Ahead of Payrolls, Stocks Decline – Europe Market Wrap

Stocks and bond markets fell on Friday as traders remained cautious ahead of US jobs data, which will provide fresh insight into the strength of the economy and the outlook for interest rates.

S&P 500 and Nasdaq 100 futures both declined 0.2%. A Chinese benchmark has surged into a bear market. Europe’s Stoxx 600 saw minimal movement. Major US insurers fell in premarket trade as wildfire-related damage estimates in Los Angeles rose.

US Treasuries remained basically flat. The week’s broad decline in European government bonds continued, with the yield on 10-year gilts holding near its highest since 2008.

A chaotic week for UK assets has come to a close, with the Pound sliding 0.1% to $1.2291, its lowest level since late 2023. UK 10 and 30-year bond yields rose by more than 20 bps in the last five sessions, the most in a year.

The Dollar index showed minimal movement. Oil hit a three-month high as another drop in US crude stockpiles, fuelled by freezing winter weather, signalled a tighter global market.

[03:30 ET] BoJ is said to still be mulling rate decision for January. [Yen strengthened]