Global Stocks Steady Ahead of U.S. Labor Data

Global stocks were little changed Friday as investors awaited a key reading on the U.S. labor market.

The Stoxx Europe 600 was up 0.2% in early trade, led by the recently hit auto sector, while U.S. stock futures were flat after Wall Street ended with modest gains. Futures prices don't necessarily reflect market moves after the opening bell.

The nonfarm payrolls report, due later Friday, is an important barometer used by Federal Reserve officials as they try to determine the strength of the U.S. economy and the course for interest rates this year.

The U.S. central bank raised benchmark interest rates in December for the first time in nearly a decade, and had signaled more rate rises in the year to come. But recent soft economic data and dovish comments from Fed officials have raised doubts the bank will be able to raise rates this year, sending the dollar to its lowest level since November.

"We're in a period right now where non-U. S. economic conditions are weakening, where global financial conditions are tightening, and I'm working with my team assessing the impact of those on the U.S., " said Federal Reserve Bank of Dallas President Robert Kaplan. "It's worth being patient, watchful, vigilant," he said.

U.S. manufacturing data and earnings guidance has been weak this year, but jobs data has continued to show signs of strength. The Labor Department will report how many jobs U.S. employers added in January, as well as the unemployment rate and a measure of wage inflation.

The euro was up 0.1% against the dollar at $1.1205, while the dollar was down 0.2% against the yen at ¥ 116.7540.

The yield on the 10-year Treasury note was steady at 1.838%.

Markets in Asia were mostly lower ahead of the jobs report and the Lunar New Year holiday next week.

Japan's Nikkei Stock Average fell 1.3% as the yen hit its highest level against the dollar in over a year. Japan's stock market has now given back all of the gains it made after the Bank of Japan's surprise interest rate cut last Friday.

China's Shanghai Composite Index fell 0.6% ahead of the release of its foreign reserves data on Sunday, while Australia's S&P ASX 200 edged down 0.1% as commodities traded mostly flat.

Brent crude oil was last down 0.6% at $34.24 a barrel. Spot gold in London was up 0.1% at $1154.90 an ounce.

In corporate news, ArcelorMittal, the world's largest steelmaker, said it would issue $3 billion worth of shares after facing a near $7 billion fourth-quarter net loss. Shares fell 7.9%.

French bank BNP Paribas SA also reported a sharp fall in fourth-quarter profit, but shares gained 3%.

Write to Riva Gold at [e-mail]

(END) Dow Jones Newswires

February 05, 2016 04:25 ET (09:25 GMT)

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