Stock futures to climb ahead of US jobs data

US stock futures are expected to spike on Friday opening as the markets eye the incoming US jobs data, which can also affect the greenback positively. With the upcoming jobs data, the results are likely to have a huge impact on Fed’s decision on any probable rate hike for the coming months.

Major stock indexes already gained during the premarket trading, Dow futures climbed 0.37% or 79 points, S&P 500 futures increased 0.47% or 11 points, Nasdaq 100 futures was up 0.38% or 21 points.

According to estimates, the US jobs data is likely to report growth around 200,000, continuing the 227,000 growth last January, while unemployment rate is expected to decline by 0.1% to 4.7%. Meanwhile the average hourly earnings are speculated to grow around 0.3%, since it gained 0.1% last February.

“This week has been defined by a selloff for government bonds globally ahead of today’s nonfarm payrolls. This has – especially in the last few hours – seen money cycling back into equities, meaning that we have the potential for some heightened volatility as the day unfolds,” a market analyst stated.

Meanwhile the dollar index was down by a few points against the basket of major currencies at 101.61, down by 0.42%, as the stronger euro drove the greenback downwards. EUR/USD is currently at 0.9401. The European euro recently rallied against the US dollar due to the ECB’s conference results, indicating dovish outlook for the future and unchanged interest rates since the present economic growth of the EU exhibits promising growth.

Should the jobs data report strong results, investors predict that the Fed will hike interest rates sooner. Fed Chairwoman Janet Yellen previously hinted on a hike increase at the central bank’s meeting to be held in March 14-15.

“In the near term it’s going to be quite tough for there to be further dollar strength, given how well priced the Fed meeting is next week, and also just how much the market has priced the year now as a whole,” said Barclays regarding the upcoming Fed rate hike.

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Stock futures to climb ahead of US jobs data Stock futures to climb ahead of US jobs data Reviewed by Trade12 Reviews on 6:30 AM Rating: 5

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