As such, U.S. and European stock futures rose on Friday, perhaps on the back of a modest drop in oil prices, as the U.S. government considers intervention in futures markets to slow the rally, while Asian stocks pared early losses.
However, questions remain about how it will work. I don’t think it’s particularly wise to try to distort derivatives when physical products are in short supply.
That aside, wars in the Middle East are raging, disrupting everything from shipping to air travel to business operations.
US President Donald Trump, always keen to be involved in world affairs, has said he wants to have a say in deciding Iran’s next leader.
It’s been a tumultuous week for markets, with investors swinging between wishful thinking and outright panic over the potential length and severity of the conflict.
The fallout from the war is being felt most acutely in energy markets, with oil heading for its biggest weekly gain since Russia invaded Ukraine in February 2022.
Concerns about a resurgence in inflation remain top of mind for investors, who are quickly pricing in more hawkish interest rate expectations across major central banks, pushing yields higher.
Meanwhile, Asian stocks were heading for their biggest weekly decline in six years.
There’s so much going on that it’s easy to forget that U.S. nonfarm payrolls are scheduled for later in the day.
The world’s biggest economy is expected to add 59,000 jobs in February, after adding 130,000 in January, while the unemployment rate is expected to hold steady at 4.3%.
While it may be too early to see concrete evidence of AI-related labor market disruption, the report will still be closely scrutinized for warning signs such as slowing job growth or even a decline in net employment or an undesirable rise in unemployment.
Key developments that may impact the market on Friday:
– U.S. non-farm payrolls (February)
– Fed’s Daley, Paulson, Collins and Hammack speak
(Edited by Jamie Freed)
