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A take a look at the day ahead in U.S. and international markets from Mike Dolan Another projection miss from a U.S. megacap integrates with care ahead of January's employment report to keep a cover on stocks into Friday's open - with resilient long-dated Treasuries squashing the yield curve to its flattest for the year.

Similar to Microsoft and Alphabet over the past number of weeks, Amazon dissatisfied Wall Street late Thursday as concern about cloud computing doused income and earnings forecasts and sent its stock down 4% overnight.

The current underwhelming outlook from the "Magnificent 7" leading U.S. tech firms check an otherwise upbeat S&P 500, with questions about heavy invests on synthetic intelligence ignited again by the development of China's inexpensive DeepSeek model.

The DeepSeek buzz, by contrast, continues to fire up Chinese stocks. They included another 1%-plus earlier on Friday regardless of ongoing concerns about a mounting Sino-U.S. trade war and Monday's deadline for Beijing's vindictive tariffs.

But the day's macro events will likely take precedence, with the release of the January U.S. work report and long-lasting revisions of past task production.

Job development most likely slowed to 170,000 in January from simply over quarter of million the previous month, partly restrained by wild fires in California and cold weather condition across much of the country.

Those distortions add a further issue to the readout, which will consist of annual benchmark modifications, brand-new population weights and updates to the seasonal modifications.

The week's sweep of other labor kenpoguy.com market reports, however, do indicate some cooling of conditions - with task openings falling, layoffs increasing and weekly jobless claims ticking greater.

With the Federal Reserve already attempting to parse the effect of President Donald Trump's brand-new economic policies, asteroidsathome.net payroll distortions just cloud the picture even further.

And as Fed officials insist they can wait and see for a bit, Fed futures remain trained on 2 more interest rate cuts this year - resuming about midyear.

The Treasury market is more encouraged though - sustaining the early week's sharp drop in 10-year yields into today's tasks report and seeing the 2-to-10 year yield curve compress to the flattest it's remained in six weeks.

Helping the long end today has actually been reassuring signals from the Treasury's quarterly refunding report that a "calling out" of financial obligation auctions to longer maturities is not yet in the works, as many had actually feared.

Treasury Secretary Scott Bessent has also insisted the brand-new government's focus would be on getting long-term rates down instead of pressuring the Fed to relieve prematurely.

Reuters analysis reveals Trump has positioned hangs on 10s of billions of dollars in congressionally-approved costs for jobs across the U.S. that vary from Iowa soybean farmers embracing greener practices to a Virginia railway growth.

Bessent also doubled down on his view the administration desires to retain a "strong dollar" policy. But he colored that with a sideswipe. "What we put on ´ t want is other countries to weaken their currencies, to control their trade."

But with the Fed on hold, all over the world continued reducing rate of interest apace this week - partially on concerns a trade tariff war will compromise their economies.

With a sharp cut in its UK development forecast, the Bank of England cut its policy rate by a quarter point on Thursday - with 2 of its policymakers choosing a bigger half point decrease. Sterling weakened initially, but has actually steadied since.

Mexico's main bank likewise cut its interest rate by 50 basis points on Thursday - saying it might cut by a comparable magnitude in the future as inflation cools and engel-und-waisen.de after the economy contracted a little late last year.

The European Reserve bank, higgledy-piggledy.xyz meantime, is expected to launch its updated estimate of what it sees as a "neutral" rate of interest later Friday.

That is essential as it informs the ECB argument about whether it needs to cut rates listed below what considers neutral to restore the flagging euro zone economy. It's presently seen around 2% - 75bps listed below the standing policy rate.

In thrall to the payrolls release, the dollar index was steady on Friday. Dollar/yen briefly notched a brand-new low for the year, however, as Bank of Japan tightening speculation simmers.

In Europe, stocks stalled near record highs as the heavy earnings season there unfolded.

Banks there have actually a been a standout winner this week and again on Friday. Danske Bank, Denmark's biggest lending institution, was up 7.1% after it posted record yearly revenues and release a new share buyback program.

Key developments that must offer more direction to U.S. markets later on Friday: * U.S. January employment report, University of Michigan February consumer study, December consumer credit; Canada Jan work report; Mexico Jan inflation * European Central Bank updates its estimate of "R *" neutral rates of interest * Federal Reserve Board Governors Michelle Bowman and Adriana Kugler speak; Bank of England Chief Economist Huw Pill speaks * U.S. business earnings: Cboe Global Markets, Fortive, Kimco Realty * Japan Prime Minister Shigeru Ishiba gos to United States

(By Mike Dolan, editing by XXXX mike.dolan@thomsonreuters.com)