Futures dip ahead of US jobs report

Bloomberg

Stocks are set for a third straight week of declines ahead of key US jobs data that could stir expectations for another sharp Federal Reserve interest-rate hike. A dollar gauge slipped from a record high and the euro strengthened.
US futures fluctuated on Friday, while European stocks rose and Asian shares fell.
The jobs update is expected to show healthy payrolls growth and follows a stronger-than-expected US manufacturing report. Traders increasingly anticipate another large 75 basis points Fed rate rise to cool inflation.
Concern that rising rates will hurt growth has weighed on markets, pushing global bonds into their first bear market in
a generation. The Bloomberg Global Aggregate Total Return Index of government and
investment-grade corporate bonds down more than 20% from a 2021 peak.
Oil pared gains after news that the Group of Seven most industrialised countries is poised to agree to introduce a price cap for global purchases of Russian oil, while Russia looks set to resume gas supplies through its key pipeline.
Meanwhile, zinc headed for its biggest weekly loss in over a decade on concern Chinese
demand will be hamstrung by new virus restrictions. Gold and Bitcoin rose.
Lululemon Athletica Inc. jumped in premarket trading after raising its full-year outlook. That gave a boost to European peers JD Sports Fashion Plc, Puma SE and Adidas AG.
But traders remain cautious. A gauge of world shares is set for its worst week since June, roiled by ebbing bets on tempered Fed tightening after US central bank officials made it clear that they see the need for restrictive monetary settings for some time.
Investors are also exiting global stock funds at a fast pace, with the fourth-largest weekly outflows of the year in the week through August 31, according to BofA citing EPFR Global data.
“We don’t have a lot of reasons to be bullish in this type of environment for the next couple of weeks and months,” Meera Pandit, global market strategist at JPMorgan Asset Management, said on Bloomberg Television. “Yet when we think about the longer term perspective and the longer term investor, these are the types of level that can be fruitful in the long run.”