Investors are also watching the fallout from this week's plunge in shares of India's Adani group, afterOn Thursday, the European Central bank and Bank of England hiked rates by 50 basis points each, with the BoE saying the tide was turning against inflation and the ECB indicating at least one more hike was on the horizon before re-evaluating its rate hike path.
Alan Ruskin, macro strategist at Deutsche Bank, said given the current market price action ahead of the U.S. payrolls data, a softer report would be regarded as endorsing all the favourite trades of the year. Futures markets still favour another 25-basis-point hike from the Fed at its March policy meeting, while implying that might be the end of its current tightening cycle. They have also priced in one rate cut by the end of this year.