Markets brace for US jobs report amid Fed policy uncertainty

Markets showed little movement as traders awaited a crucial US jobs report, expected to guide the Federal Reserve’s policy.

Europe’s Stoxx 600 and US futures remained flat, along with the dollar and Treasuries. Direct Line Insurance Group surged 8.5% after an improved takeover offer from Aviva Plc.

The labor data, projecting 220,000 new jobs for November, will shape expectations for the Fed’s December rate decision. Current odds suggest a 70% chance of a quarter-point rate cut.

“Today’s payrolls will shed light on the US labor market and the timing of Fed cuts,” Barclays strategists noted, with steady data potentially bolstering equities.

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In Asia, Chinese stocks rose on hopes of economic stimulus ahead of a major policy meeting, while South Korean markets fluctuated amid political developments.

Oil stayed flat after OPEC+ delayed production hikes, while Bitcoin dipped after hitting $100,000, as traders braced for potential pullbacks.

Stronger job data could briefly push yields higher before markets reassess, TD Securities analysts suggested, noting opportunities to buy on dips.