PAYROLLS LOOM: How U.S. stock actually open could hinge on December jobs data. The figures could help determine the pace at which the Federal Reserve raises interest rates this year. In December, it raised its main rate to 0.25 percent, its first increase in nearly a decade, largely because of an improvement in the U.S. labor market. The figures, due an hour before the U.S. opening bell, are expected to show non-farm payrolls increased by a little more than 200,000 in December.
ANALYST TAKE: "Today`s US jobs report may be seen to carry less significance than in recent months, particularly given the drama surrounding Chinese markets this week, but with the rate hike cycle now underway, the data will only become increasingly significant as it will largely determine whether a faster pace of tightening is necessary, or the Fed has made a mistake in initiating the process," said Craig Erlam, senior market analyst at OANDA.
DOLLAR REACTION: The dollar will be in focus after the payrolls figures as traders assess the path of future rate hikes. Ahead of the figures, the dollar was firm. The euro was down 0.4 percent at $1.0873 while the dollar rose 0.5 percent to 118.32 yen.
CHINA RELIEF: Investors around the world were relieved Friday by a steadier tone in Chinese trading. The benchmark Shanghai Composite Index rose 2 percent to 3,186.41 a day after trading was suspended following a 7 percent plunge. Worries about China have been fueled by soft economic data. Those fears have drowned out signs that the United States and Europe are doing fairly well.
ASIA`S DAY: In other Asian markets, Hong Kong`s Hang Seng advanced 0.6 percent to 20,453.71 and South Korea`s Kospi added 0.7 percent to 1,917.62. Japan`s Nikkei 225 lost 0.4 percent to 17,697.96 and Australia`s S&P/ASX 200 shed 0.4 percent to 4,990.80. India`s Sensex added 0.6 percent to 25,009.80 and Taiwan and Singapore also advanced.
OIL: In energy trading, U.S. crude sank Thursday to its lowest level in 12 years on fears Chinese demand might weaken. The benchmark U.S. contract rebounded moderately Friday, rising 19 cents to $33.46 in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, rose 39 cents to $34.14 a barrel in London.
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