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European Stock Futures Higher; Nonfarm Payrolls in Focus By - - Financial Markets Worldwide

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Stock Markets 8 hours ago (Jan 07, 2022 02:02AM ET)

European Stock Futures Higher; Nonfarm Payrolls in Focus © Reuters.

By Peter Nurse - European stock markets are expected to open largely unchanged Friday, stabilizing after the previous session’s sharp losses with investors looking to the release of key U.S. employment data for confirmation of the likelihood of early U.S. interest rate hikes. 

At 2:05 AM ET (0705 GMT), the contract in Germany traded 0.1% lower, in France dropped 0.1%, while the contract in the U.K. rose 0.1%.

European indexes slumped on Wednesday, with the falling 1.4% and the dropping 1.7%, after the of the December Federal Reserve meeting had shown that a tight jobs market as well as elevated and persistent inflation could force the U.S. central bank to raise rates more aggressively this year.

This brings the release of U.S. data, due later Friday, firmly into the spotlight. 

The payrolls are expected to have risen by 400,000 in December, almost doubling November’s disappointing 210,000 rise, with the seen falling to 4.1% from 4.2%. 

However, Wednesday’s report, which is often used as a guide to the government’s, showed companies added 807,000 jobs last month, more than twice the number expected. Other items such as wage growth will also be parsed for their implications for inflation.

Back in Europe, fell 0.2% on the month in November, after rising 2.8% the previous month, but most eyes will be on the December release. This is expected to show prices remaining at elevated levels, climbing 4.7% on the year, a slight reduction from 4.9% the previous month. 

In corporate news, STMicroelectronics (PA:) said its preliminary fourth-quarter revenues were slightly above the guidance given at the end of October, in the context of a global microchip supply crunch, while Royal Dutch Shell (LON:) said it will channel $5.5 billion in proceeds from the sale of its Permian assets into a rapid stock buyback.

Oil prices rose Friday, fuelled by concerns over global supply, largely on the back of unrest in Kazakhstan, a member of the OPEC+ alliance that is gradually adding oil back to the market.

TCO, Kazakhstan’s biggest oil producer and a joint venture led by Chevron (NYSE:), confirmed Friday it has altered output amid unrest and protests in the country, but declined to provide further details on the size of the adjustment. President Tokayev said that order had been largely restored after the arrival of troops from the Russian-led CSTO alliance, of which Kazakhstan is a member.

These supply concerns have appeared to have superseded worries that the rapid spread of the Omicron coronavirus variant might hurt demand.

By 2:05 AM ET, futures traded 0.9% higher at $80.18 a barrel, while the contract rose 0.9% to $82.70. Both contracts were on track for gains of more than 6% in the first week of the year, with prices at their highest since late November.

Additionally, rose 0.1% to $1,791.05/oz, while traded 0.1% higher at 1.1300.

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