US stock futures flat ahead of key jobs data: Markets wrap

(Bloomberg) — US stock futures were little changed after major indexes posted gains in thin trade ahead of a three-day weekend that will see an important jobs report. The yen fluctuated after falling against the dollar on Thursday for the first time this week.

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European markets are mostly closed for the Good Friday holiday, as will stock markets in the US, although the government will release a payroll report that traders will scrutinize for clues to the Fed’s next policy move. Stock futures will close at 9:15 am in New York, 45 minutes after the jobs data fell.

US Treasuries traded as normal in Tokyo, closed during London hours and reopened at 6am in New York for an abbreviated session, with the recommended close at noon. The yield on the two-year note was little changed at 3.82%, down from 4.02% a week ago after a slew of weak economic data boosted bets on Fed easing.

The jobs report is expected to show employment slowing to a still strong 230,000 jobs in March and the unemployment rate near a historic low. With investors aggressively priced in rate cuts this year, a “very hot” payroll number should dampen those expectations, while a “very cold” report should add to concerns about a hard landing, according to Tom Esay, trader Former Merrill Lynch founder of The Sevens Report newsletter.

The S&P 500 ended its first losing week in four years as data on Thursday showed that jobless claims beat estimates last week, a day after a private payrolls report indicated hiring slowed more than expected.

Read: Bond movement gets crazy on Good Friday payroll, lower stocks

Story continues

US stocks rebounded from early losses on Thursday after St. Louis Federal Reserve Bank President James Bullard said he didn’t think tighter credit conditions stemming from the recent banking turmoil would tip the economy into a recession. Meanwhile, the International Monetary Fund warned that its projections for global economic growth over the next five years are the weakest in more than three decades, urging countries to avoid an economic divide caused by geopolitical tensions and take steps to boost productivity.

While most of Asia including Australia, Hong Kong and Singapore were closed for holidays, financial markets in Japan and mainland China were open. Japan’s Topix rose, ending a two-day decline, and stocks rose in China and South Korea.

money markets

Money market funds’ cash piles hit a new record last week, though cash flows have slowed from their recent brisk pace. About $49.1 billion was injected into US money market funds in the week ending April 5, bringing total assets to an unprecedented $5.25 trillion, according to data from the Investment Firm Institute.

Money market funds have been making money lately. Initially, much of that influx was driven by more attractive rates, but concern about the stability of some smaller lenders has helped add to that over the past month.

Some of the major movements in the markets:

Stores

• S&P 500 futures were down 0.1% as of 7:05 a.m. in New York.

• Nasdaq 100 futures have changed little.

• Topix rose 0.3%, while Nikkei 225 rose 0.2%.

• The Shanghai Composite added 0.3% and the CSI 300 rose 0.6%.

bonds

currencies

Digital currencies

This story was produced with help from Bloomberg Automation.

— With assistance from Naoto Hosoda and Stephen Kirkland.

(An earlier version was corrected to say that shares rebounded again Thursday in the sixth paragraph.)

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