European stocks head for 7th weekly gain

Yen at two-month high on rate hike bets

Gold constant near record peak

By Amanda Cooper

LONDON, Feb 7 (Reuters) -

U.S. stock futures steadied on Friday ahead of U.S. payrolls data, with investors cautiously positive that the world may avoid a full-on trade war, 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 starting a trade war and whipping up market volatility, financiers have been cautious of making any significant relocations, considered that he followed through on his hazard to impose tasks on China while granting Mexico and Canada a one-month reprieve.

The necessary U.S. jobs report for January is due ahead of the Wall Street open. Economists expect to see 170,000 employees contributed to nonfarm payrolls last month, however given the possible distortions from spells of winter and akropolistravel.com the California wildfires, the series of forecasts is wide.

"The focus for the financial markets in recent weeks has been extremely much on Trump and his financial policies, in specific on trade, but today there is the capacity for the tasks information to affect Fed rate expectations," Derek Halpenny, a currency strategist at MUFG, said.

"A pretty large divergence from the agreement is still most likely required to shift expectations significantly however extreme weather condition at this time of the year has in the past resulted in greatly weaker NFP readings and weather might impact today ´ s report," he said.

Futures on the Nasdaq and S&P 500 were trading mainly steady 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 a seventh straight week of gains, trading flat on the day after having actually struck record highs earlier today, following a spate of strong incomes from the similarity Danish weight-loss drugmaker Novo Nordisk, German software company SAP and French loan provider BNP Paribas.

European stocks have actually staged their best performance in a years against Wall Street in the very first 6 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 financiers, 35.237.164.2 who have actually caught the AI theme in the wake of home-grown start-up DeepSeek's advancement.

DELICATE CHINA

Beijing's seemingly determined response to Trump's tariffs has actually left space for asteroidsathome.net settlements, analysts state, 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 significant sound and uncertainty, we don't see intensifying trade stress as a game changer in the potential customers for the Chinese market," said James Cook, 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 begin the rate-cutting cycle again.

The dollar edged up 0.1% against a basket of currencies, having rallied 7% in 2015, as financiers priced in an even more aggressive policy position from the Fed this year, higgledy-piggledy.xyz where rate cuts may be rare.

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

The yen touched 150.96 per dollar over night, its greatest level given that December 10, before alleviating 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 actually dropped 0.5% on Thursday as the BoE cut interest rates and slashed its 2025 UK growth projection.

In products, oil edged up, while gold steadied above $2,800 an ounce, close to record highs.

(Additional reporting by Ankur Banerjee in Singapore