European stocks and U.S. equity futures are muted ahead of key U.S. job reports to be announced on Saturday morning. Reaching full employment point is one of the goals of the Federal Reserves target to start tapering of asset purchases. A stronger job growth could trigger expectation of faster pace in reducing asset purchases.
S&P 500 and Nasdaq futures are in the red down by 0.06% and 0.20% respectively.
The market is also pricing in subsiding fears of the severity of the omicron variant.
Most Asian insides closed the week on a positive note with Nikkei 225 rallied as high as 1.00% on close.
Tension is growing in China as ride railing giant Didi plans to delist from the Nasdaq after being spooked by the Chinese authorities to delist. Trader’s pricing in their concerns on other Chinese companies listed in the U.S.
China’s real estate developer Kaisa Group Holding Ltd. failed to secure approval from offshore bondholders for a bond swap, pushing it further to a second default for its bond due next week.
Treasuries are on a climb after FED laid out indication of faster tapering and possibility of earlier rate hikes. This has incentivized the dollar index to climb sharply to 96.24.
A stronger dollar poses threat to the emerging currencies. An interest squeeze will put more pressure on already battered Thai baht, Turkish lira.
Crude oils are trading in the positive with WTI trading at $68.03 and Brent at $71.32.