Oil was heading towards its best weekly gains since mid-December, fueled by supply concerns amid escalating unrest in Kazakhstan, where an internet shutdown hitting the network’s global computing power bitcoin helped push cryptocurrency down to its lowest level since September.
The MSCI All Country stock index was flat 744.71 points, down 2% from its record Tuesday.
In Europe, the STOXX index lost 0.5% 485 points, down 2% from its record on Tuesday. Key inflation data in the eurozone was expected at 1000 GMT.
The excellent start to 2022 was reversed on Wednesday after minutes from the Fed’s December meeting indicated that the central bank may have to raise interest rates earlier than expected.
Some Fed policymakers also want to reduce the central bank’s balance sheet, which has risen to more than $ 8 trillion, and raise rates, the report said.
The stock market stabilized on Thursday night, but analysts at ING Bank said the minutes still spill over into markets, pushing bond yields up, hitting growth stocks and keeping the dollar at a reasonable level. .
“We have the nonfarm payrolls today and will that have an effect on rate hike expectations? I don’t think so,” said Michael Hewson, chief market analyst at CMC Markets. . “The Fed is on track to begin gradual and incremental rate hikes and the key question will be how much the markets allow them to get away with and that will largely depend on the guidance.”
According to a Reuters survey of economists, non-farm jobs likely increased by 400,000 last month, after rising 210,000 in November.
Goldman Sachs said it expects an increase above the consensus of 500,000.
S&P 500 e-mini stock futures were slightly weaker.
THE BRUT RISES, THE BITCOIN FALLS
Asian stocks mostly rose on Friday, ending two days of losses.
The largest MSCI index of equities in the Asia-Pacific region, excluding Japan, rose 0.7%, supported by gains in Australia where the local benchmark climbed 1.3%, thanks to bank stocks. The Japanese Nikkei has changed little.
Stocks in China and Hong Kong have advanced slightly in the hope that Beijing will deploy more supportive measures to prioritize economic stability.
An index of mainland Chinese real estate values quoted Hong Kong jumped 4.6% after media reports Chinese policymakers planned to exclude debt accumulated when acquiring distressed assets when they would be worth compliance with the debt ratio.
Investors are likely to adjust to “attractive and cheaper” Asian stocks at the start of the year, said Jim McCafferty, APAC co-head of equity research at Nomura.
“With the looming rate hike, from a global risk diversification perspective, investors are likely to shift their money from US markets to Asian markets, especially China, as it is increasingly independent of this. what is the United States doing, “he said.
US Treasury yields paused, having risen sharply this week following the publication of the Fed minutes.
The yield on benchmark 10-year Treasury bonds was last 1.7249% after hitting 1.7530% overnight, its highest since April 2021 and up sharply from its close of 1.5118% in 2021 .
The dollar was expected to post large weekly gains, hitting a five-year high against the 116.35 yen on Tuesday, after hovering around 115.87 on Friday.
Oil prices have recovered, which some analysts have linked to news of the arrival of Russian paratroopers to quell unrest in Kazakhstan, although production in the OPEC + producing country was not affected until. present.
Brent futures rose 0.48% to $ 82.38 per barrel, and US crude 0.5% to $ 79.83.
Spot gold rose to $ 1,789 an ounce after hitting a two-week low on Thursday at $ 1,788.25 as rising US Treasury yields dampened demand for the non-interest-bearing metal.
Bitcoin fell 2.3% to around $ 42,095 after hitting its lowest level since late September, as the Fed minutes in favor of the hawks also sapped the appetite for riskier appetites.
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