Futures ahead of jobs data, oil set for weekly loss

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U.S. stock futures fell in cautious trade on Friday as investors awaited the monthly U.S. jobs report as oil retreated from recent gains to head for a weekly loss.

Dow futures were down 0.19% at 6:05 a.m. ET, falling alongside other major U.S. stock indices after a rally on Thursday as


recession

worries receded. S&P 500 futures fell 0.31%, while the tech-heavy Nasdaq lost 0.48%.

The June nonfarm payrolls report released later today will give investors a clearer picture of the slowdown in the overheated US labor market.

Analysts said a good month of hiring would be tough for the


Federal Reserve

to ignore and could give it the impetus it needs to redouble its inflation-fighting plan if wage pressures start to fade.

“It will probably be a double-edged sword for investors,” said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown. “While the data should show another round of strong hiring, which is inherently positive, it also paves the way for policymakers to raise interest rates even more aggressively.”

At the same time, a sluggish labor market could worry investors, who fear that the Fed’s monetary tightening could tip the US economy into a serious economic slowdown.

“The payrolls are ahead of us today and given that we think it will be difficult to call a real recession until employment cracks, these are important events,” said Jim Reid, strategist at Deutsche Bank, in a note.

Elsewhere, Europe’s pancontinental Stoxx 600 index struggled for direction, last down 0.05% ahead of a speech by European Central Bank President Christine Lagarde. The CAC 40 in Paris fell 0.25%, while the DAX 40 in Frankfurt rose 0.10%.

Meanwhile, London’s FTSE 100 fell 0.19% amid speculation over the UK’s next leader following the resignation of Boris Johnson.

In Asia, the Shanghai Composite fell 0.25%, but Hong Kong’s Hang Seng closed up 0.38% after reports that China is seeking to boost spending by allowing local governments to borrow $220 billion more this year.

Meanwhile, Tokyo’s Nikkei 225 closed 0.10% higher as the shooting of late former Japanese Prime Minister Shinzo Abe sent shockwaves through markets.

Oil prices slipped in bumpy trade on Friday after rebounding above $100 on Thursday. Futures on U.S. and global benchmarks are heading for a weekly loss as concerns about demand – driven by the prospect of a recession and China’s ongoing “COVID-zero” restrictions – have it outweighed concerns about tight supply.

US benchmark WTI crude was down 0.34% at $102.33 a barrel, while Brent crude was down 0.14% at $104.50 a barrel.

Here’s how the other major asset classes are performing:

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