Investing.com - Here are the top five things you need to know in financial markets on Friday, March 9:
1. Attention to shift to wages in jobs report
The U.S. Labor Department will release the nonfarm payrolls report for February at 8:30AM ET (1330GMT) on Friday, and it will be watched more for what it says about wages than hiring.
The consensus forecast is that the data will show jobs growth of 200,000, after adding 200,000 positions in January, while the unemployment rate is forecast to dip to a 17-year low of 4.0% from 4.1%.
Most of the focus will likely be on average hourly earnings figures, which are expected to rise 0.2%, slightly less a month earlier. On an annualized basis, wages are forecast to increase 2.8%, slowing slightly from 2.9% in January, which was the largest annual gain in more than 8-1/2 years.
A pickup in wages could be an early sign for higher inflation, supporting the case for higher interest rates in the year ahead.
2. U.S. stocks hold steady ahead of NFP
After Wall Street breathed a sigh of relief on Thursday as U.S. President Donald Trump announced import tariffs on steel and aluminum but said Canada and Mexico would be exempt and that other countries could apply for exemptions, investors were cautious. On the nine year anniversary of the current bull market, stock futures registering slight gains as they turned their attention to the monthly employment report.
At 5:51AM ET (10:51GMT), the blue-chip Dow futures gained 30 points, or 0.12%, S&P 500 futures rose 2 points, or 0.06%, while the Nasdaq 100 futures edged forward 5 points, or 0.08%.
Elsewhere, European shares were showing slight losses with the benchmark Euro Stoxx 50 down around 0.2% by 5:52AM ET (10:52GMT).
Earlier, Asian stocks celebrated Trump’s softer position on trade tariffs while also keeping an eye on developments surrounding North Korea. Kim Jong has committed to "denuclearization" and offered to hold the first-ever U.S.-North Korea summit, marking a potentially dramatic breakthrough in the North Korea nuclear standoff.
However, Trump promised to remain vigilant and maintain sanctions until a deal was penned. The U.S. President did accept an invitation to sit down with the North Korean leader with meeting preparations underway.
3. BoJ offers no surprises
The Bank of Japan stayed the course with its monetary stimulus at governor Haruhiko Kuroda’s final policy meeting before his new term begins next month.
The BOJ left interest rates unchanged and kept its yield-curve control settings and asset purchases unchanged, in line with market expectations.
Kuroda vowed to achieve the monetary authority’s 2% inflation as he prepared to embark on his second term.
“As we always spell out in our monetary policy statements, the BOJ will make appropriate policy adjustments taking account of developments in economic activity and prices as well as financial conditions, with a view to maintaining the momentum toward achieving the price stability target,” Kuroda said.
“If the momentum is not kept, then we will of course consider additional monetary easing,” he added.
4. Chinese inflation hits 4-year high
China’s inflation rose more than forecast in February, hitting its highest level since November 2013, although the strong reading was attributed to distortions from higher food prices due to the Chinese Lunar New Year celebrations.
On an annualized basis, the consumer price index rose 2.9%, nearly doubling the reading seen in the prior month and topping the consensus forecast for a 2.5% gain.
However, China's producer price inflation eased to the slowest pace in 15 months in February, as the cost of raw materials and other inputs rose at a milder pace, pointing to a potential softening in industrial sector profit. The 3.7% gain in February’s PPI missed expectations for a 3.7% rise.
5. Oil pares weekly losses ahead of U.S. shale data
Crude oil prices regained some ground on Friday, as news of a U.S.-North Korea lifted market sentiment, although concerns over U.S. oil inventories and production levels continued to weigh.
U.S. crude oil futures rose 0.83% to $60.62 by 5:53AM ET (10:53GMT), while Brent oil gained 1.01% to $64.24.
The U.S. benchmark was still on track for losses of around 1%
Market participants will receive further input on the state of U.S. shale production later on Friday when Baker Hughes releases its most recent weekly rig count data.