Stocks swing before US jobs report; bonds rise: markets wrap

European equities pared an early gain while stock-index futures pointed to a positive open on Wall Street ahead of a key US jobs report. Bonds edged higher and the dollar was steady.

The Stoxx Europe 600 Index gave up most of its advance as bank shares declined. Contracts on the three main American equity gauges pointed to further increases after rising to records on Thursday. Shares in Japan and Korea climbed while US Treasuries were steady as tension in the Middle East ebbed.

Signs that America and Iran have stepped back from the brink of war helped revitalize risk appetite since the middle of the week. A well-flagged partial trade deal between the US and China looks locked in as China’s vice premier will visit Washington next week for a signing ceremony. Investors also received reassurance from Federal Reserve Vice Chairman Richard Clarida that the US economy remains in a good place and the central bank isn’t about to switch course.

“If growth recovers and even if inflation overshoots a little bit, the Fed is probably going to let it run, and that probably goes for other central banks, but if growth weakens they could cut again,” Patrik Schowitz, global strategist at JPMorgan Asset Management told Bloomberg Television. “You have this asymmetric set-up and that’s quite helpful for markets.”

The final US jobs report for 2019, due later Friday, is forecast to show employers added 160,000 jobs in December.

Elsewhere, West Texas Intermediate oil was steady, near its lowest level since mid-December. The Australian dollar edged up after retail sales data topped estimates. Indonesia’s rupiah advanced to the highest since April 2018 after the central bank suggested it wouldn’t stand in the way of allowing the currency to strengthen.

These are moves in major markets:

Stocks

• The Stoxx Europe 600 Index gained 0.1% as of 8:35 a.m. London time.
• Futures on the S&P 500 Index climbed 0.1%.
• Germany’s DAX Index rose 0.1%.
• The MSCI Asia Pacific Index increased 0.4%.

Currencies

• The Bloomberg Dollar Spot Index was little changed at 1,194.44.
• The euro decreased 0.1% to $1.1097.
• The British pound fell 0.1% to $1.305.
• The South Korean Won weakened 0.2% to 1,161.50 per dollar.

Bonds

• The yield on 10-year Treasuries fell one basis point to 1.84%.
• The yield on two-year Treasuries declined less than one basis point to 1.58%.
• Germany’s 10-year yield decreased two basis points to -0.20%.
• Britain’s 10-year yield dipped two basis points to 0.794%.

Commodities

• West Texas Intermediate crude declined 0.1% to $59.49 a barrel.
• Silver strengthened 0.3% to $17.94 per ounce.
• Iron ore decreased 0.6% to $91.55 per metric ton.

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