This Friday investors and traders will be keeping a close eye on this month’s Nfp report which is due at 12:30 GMT. Meanwhile, the USD is trading at a level of 7-weeks high against the Euro and other big currencies. Global stocks continue their good form, but still focusing on the political crisis in Spain. Here are all the big headlines for today’s trading.
1. Nonfarm payrolls report ahead
The U.S. Labor Department was set to release its September nonfarm payrolls (NFP) report at 12:30 GMT on Friday.
The consensus forecast is that the data will show jobs growth of just 90,000 this month, slowing from an increase of 156,000 in August, as the impact of Hurricanes Harvey and Irma are felt. The unemployment rate is forecast to hold steady at 4.4%.
Most of the focus will likely be on average hourly earnings figures, which are expected to rise 0.3% after gaining 0.1% a month earlier.
An upbeat employment report will point to an improving economy and support the case for higher interest rates in the coming months, while a weak report would add to uncertainty over the economic outlook and push prospects of tighter monetary policy further off the table.
2. Dollar steady at 7-week highs
The House of Representatives voted 219-106 a 2018 budget resolution on Thursday, marking a first important step toward a major tax reform plan.
The vote came a week after the Trump administration outlined plans for a sweeping overhaul of the U.S. tax code.
Meanwhile, hopes for a December rate hike by the Fed were boosted after Philadelphia Federal Reserve Bank President Patrick Harker said on Thursday that he is still planning on one more rate hike this year and three next year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.10% at 93.87 by 10:00 GMT, its highest since August 17.
3. Political chaos in Spain
On Thursday, Spain's Constitutional Court ordered the regional parliament of Catalonia to close on Monday, raising doubts over whether the region will be able to declare independence from Spain.
In separate news, Spanish lender Banco Sabadell announced plans to move its headquarters out of Catalonia, while Caixabank was set to make a decision on a move Friday.
Spain's IBEX index of the country's 35 biggest stocks moved lower in European morning trade, but remained well off a seven-month low hit on Wednesday.
The Euro was also affected by tensions in Spain. EUR/USD was down, trading near a 7-week low level of 1.1705 by 10:00 GMT.
4. Global stocks rally on
Asian-Pacific equities closed higher on Friday, with several major markets in the region still shut for local holidays. Japan's Nikkei ended the session at a fresh two-year peak, while Australia's S&P/ASX 200 bounced significantly higher, helped by a recovery in the commodity sector.
Meanwhile, European shares were mixed amid concerns over political stability in Spain and ahead of the U.S. nonfarm payrolls report, although Germany's DAX continued to hover at fresh record highs.
On Wall Street, U.S. stocks pointed to a steady open, following another record close for all three major indices on Thursday, as optimism over the outlook for the U.S. economy continues to boost investors' confidence.
Elsewhere, Oil prices retreated as traders monitored tropical storm Nate which was heading toward the Gulf of Mexico and was expected to evolve into a hurricane by the weekend.
However, the commodity continued to benefit from the prospect of extended oil production cuts by the Organization of the Petroleum of Exporting Countries.
