The US jobs data and a speech from Federal Reserve Chair Jerome Powell will be the focal point for markets on Friday. Investor sentiment towards the US economy is downbeat, making it challenging to lift gloomy expectations.
According to Reuters economist polls, the nonfarm payrolls report is expected to show an addition of 160,000 jobs in February, following a 143,000 gain in January. The unemployment rate is set to remain steady at 4.0%. However, there is risk to the downside, especially given recent data that missed market estimates.
Global growth concerns have resurfaced, with trade tension weighing on consumer confidence and business activity. Fed funds futures indicate three more policy interest rate cuts by year-end. A significant miss in either the payrolls or unemployment figures could prompt traders to increase bets on rate cuts.
Powell’s speech after the data release will provide real-time reaction to what the figures might mean for the central bank’s interest rate outlook. Fed officials have sounded the alarm on a weakening US economy, but Governor Christopher Waller is strongly opposed to a rate cut at this month’s policy meeting.
In other markets, global bond selloff triggered by Germany’s spending plans has shown signs of abating. European stock futures point to a negative open, while Wall Street futures tick higher, reversing their decline from Thursday.
Source: https://www.reuters.com/markets/europe/global-markets-view-europe-2025-03-07