European stocks head for 7th weekly gain

Yen at two-month high up on rate hike bets

Gold consistent near record peak

By Amanda Cooper

LONDON, Feb 7 (Reuters) -

U.S. stock futures steadied on Friday ahead of U.S. payrolls data, with financiers carefully optimistic that the world might avoid a full-on trade war, yewiki.org while the prospect of more rate walkings in Japan this year briefly sent out the yen towards two-month highs.

In a week that started with U.S. President Donald Trump kicking off a trade war and whipping up market volatility, financiers have actually been cautious of making any major moves, considered that he followed through on his danger to enforce duties on China while approving Mexico and Canada a one-month reprieve.

The critical U.S. jobs report for January is due ahead of the Wall Street open. Economists anticipate to see 170,000 workers contributed to nonfarm payrolls last month, but offered the possible distortions from spells of winter and yewiki.org the California wildfires, the variety of forecasts is broad.

"The focus for the monetary markets in current weeks has actually been quite on Trump and his economic policies, in specific on trade, but today there is the potential for the jobs data to influence Fed rate expectations," Derek Halpenny, a currency strategist at MUFG, said.

"A pretty large divergence from the agreement is still likely needed to shift expectations notably but severe weather condition at this time of the year has in the past led to greatly weaker NFP readings and weather condition might impact today ´ s report," he said.

Futures on the Nasdaq and S&P 500 were trading mainly constant on the day, while shares of

Amazon

slipped in premarket trading on the back of

weakness

in the retailer's cloud system.

In Europe, the STOXX 600 headed for wiki.myamens.com a seventh straight week of gains, trading flat on the day after having struck record highs previously today, following a spate of strong profits from the similarity Danish weight-loss drugmaker Novo Nordisk, German software SAP and French loan provider BNP Paribas.

European stocks have actually staged their finest efficiency in a years against Wall Street in the very first six weeks of 2025, however the focus is now on whether those gains can be sustained.

On the Asian market, tech stocks staged a rally, powered by Chinese retail investors, who have actually struck on the AI theme in the wake of home-grown start-up DeepSeek's development.

DELICATE CHINA

Beijing's apparently determined reaction to Trump's tariffs has actually left space for settlements, analysts state, systemcheck-wiki.de which has helped repair financier sentiment.

China's blue-chip stock index closed up 1.3% after touching a one-month high.

"Whilst there is considerable noise and uncertainty, we do not see escalating trade stress as a video game changer in the prospects for the Chinese market," said James Cook, investment director for emerging markets at Federated Hermes.

Markets are pricing in 43 basis points of relieving this year from the Fed, with a rate cut in July completely priced in, as policymakers remain in no rush to start the rate-cutting cycle again.

The dollar edged up 0.1% against a basket of currencies, having rallied 7% last year, as financiers priced in a much more aggressive policy position from the Fed this year, where rate cuts might be scarce.

Other main banks are cutting rate of interest, while the Bank of Japan is tailoring up for at least another rate trek this year. Strong wage development information has actually intensified the opportunities of tighter monetary policy, which has pressed the yen to two-month highs against the dollar.

The yen touched 150.96 per dollar overnight, its greatest level because December 10, before easing to leave the dollar up 0.4% on the day at 152.155.

Sterling reversed earlier losses to rise 0.1% to $1.2449, having dropped 0.5% on Thursday as the BoE cut rates of interest and slashed its 2025 UK development forecast.

In products, oil edged up, while gold steadied above $2,800 an ounce, near tape highs.

(Additional reporting by Ankur Banerjee in Singapore