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Look At The Stock Market Ahead Of U.S. Payrolls

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By Minipip
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Investors anxiously await the announcement of the crucial monthly U.S. jobs data, which could affect Federal Reserve monetary policy.

As investors anxiously await the announcement of the crucial monthly U.S. jobs data, which could affect Federal Reserve monetary policy, European stock markets are anticipated to open on Friday with slight losses. 

 

The Federal Reserve Chair Jerome Powell's remarks this week that the American central bank would consider lowering the rate of its interest rate increases at its final policy-setting meeting later this month have helped the equity markets. 

 

The market is currently preparing for a modest decrease of 50 basis points on December 14 after the Fed increased by 75 basis points at its last four meetings. 

 

The U.S. jobs data that will be released later on Friday could be the next element to affect the Fed's decision. According to economists, there were only roughly 200,000 new jobs created in November, down from 261,000 the month before. 

 

Back in Europe, the Eurozone's inflation rate dropped more than anticipated in November but stayed close to records, at 10% on an annual basis. 

 

Christine Lagarde, president of the European Central Bank, issued a warning on Friday that the fiscal policies of some European governments could result in excessive demand, forcing the central bank to tighten monetary policy more than would otherwise be necessary. 

 

Germany's October trade data and the same-month producer prices for the Eurozone are included in the economic data schedule for Europe on Friday. 

 

According to experts at renowned investment bank JPMorgan, Credit Suisse is likely to be in the limelight on Friday in the corporate sector due to ongoing client exodus at the troubled Swiss lender that may fuel takeover rumours and result in the partial sale of its domestic subsidiary. 

 

Furthermore, crude oil prices were essentially steady on Friday, they are expected to rise for the week on expectations that China would continue to ease COVID regulations, which will increase economic activity and, in turn, energy demand in the world's largest crude importer. 

 

Beijing's announcement that it would relax the country's rigorous COVID policy by allowing some sick people to isolate at home in the capital city has raised expectations for a wider relaxation of its quarantine procedures in the days to come following a time of upheaval. 

 

Finally, investors are to expect Nonfarm Payrolls at 13:30 GMT and Unemployment Rate also at 13:30 GMT. 

 

(Sources: investing.com, reuters.com) 


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