Previewing Friday's market agenda, Rae Wee highlights that U.S. job data and a speech by Federal Reserve Chair Jerome Powell are expected to take center stage, amid uncertainty surrounding the evolving policy of U.S. President.
Investor sentiment toward the U.S. economy and markets leading into these events appears cautious, with a higher threshold expected for any potential improvement as uncertainty persists. Forecasts suggest that the upcoming nonfarm payrolls report could reveal an addition of 160,000 jobs in February, maintaining the 4.0% unemployment rate. However, the prevailing risk leans towards potential downside surprises.
Concerns about global growth, reignited by trade tensions impacting consumer and business confidence, remain prominent. Market indicators are hinting at potential future rate hikes by the Federal Reserve, pending the data outcomes. Powell's post-data speech is likely to provide insights into the Fed's interest rate perspective.
While a bond selloff initially shook markets, showing signs of easing, European stock futures brace for a negative start, contrasting with Wall Street futures rebounding from a recent dip. Investors grapple with navigating President Trump's fluctuating policy actions, considering the diminishing impact of the "Trump put" on the stock market and a growing focus on debt markets.
In the latest policy move, the U.S. President announced tariffs on goods from Canada and Mexico. Noteworthy market-influencing developments to watch for on Friday include: [...].