European Shares Set For Muted Start Before US Jobs Data

(RTTNews) - European stocks may drift lower at open on Friday as investors brace for the all-important U.S. jobs report later in the day.

Economists expect to see an increase of 155,000 jobs in December, less than the gain of 227,000 in November's reading. The jobless rate is seen holding at 4.2 percent.

A stronger report may fuel ongoing worries that the Federal Reserve may not lower interest rates this year.

Fed funds futures trading data currently price in only about a 7 percent chance of a quarter-point cut at the next policy meeting later this month.

Asian markets were moving lower due to lingering uncertainty over U.S. policies under the incoming Trump administration and China's growth prospects.

Treasuries advanced in Asian trading after several Fed officials said that interest rate are likely to remain at current levels for an extended period.

Chinese yields rose and the yuan slipped to a new 16-month low despite the People's Bank of China deciding to suspend treasury bond purchases temporarily due to short supply of the bonds.

The dollar index was little changed following a three-day advance.

The British pound was under pressure after declining to lowest in more than a year the previous day on signs of rising borrowing costs and deficit woes.

The Japanese yen struggled near multi-month lows amid doubts over the timing of the next BoJ rate hike.

Gold ticked higher and headed for a weekly gain despite heightened uncertainty over U.S. interest rates.

Oil prices were set for a third weekly gain as signs of falling U.S. inventories offset China demand concerns.

European stocks closed broadly higher on Thursday despite inflation concerns and Trump's tariff threats.

Trading volumes were a bit thin as U.S. markets were closed in honor of former U.S. President Jimmy Carter.

The pan European STOXX 600 gained 0.4 percent. The U.K.'s FTSE 100 surged 0.8 percent and France's CAC 40 added half a percent while the German DAX edged down marginally.