European bourses are seen lower on Friday as political uncertainty in Italy and France intensifies.
The French CAC is set to open 8 points lower at 5,534; the German DAX should start 38 points lower at 10,473 and the FTSE is seen 42 points down at 6,706.
Sunday’s referendum in Italy continues to worry investors as it could spark fresh elections and complicate the recapitalization process of Italian banks. Furthermore, President Francois Hollande of France has announced he will not be seeking a second term in the country’s upcoming presidential election.
Oil prices were slightly lower as investors start raising questions on whether this week’s OPEC deal will be implemented. Meanwhile, traders will also be keeping an eye on the U.S. Thursday with nonfarm payrolls numbers due out at 1.30 p.m. This fresh data comes as global bond yields ticked higher on Thursday with increasing speculation that the Federal Reserve could hike rates this month.
Berkley Group is reporting Friday and the euro zone will see the latest producer prices figures at 10 a.m. London time.
Asian markets stuttered on Friday, snapping out of the reprieve seen post-OPEC output cut deal, as dollar strength pauses and investors await the U.S. jobs report.
Down Under, the ASX 200 was down 0.77 percent, dragged by broad losses across the index except for the all-ordinaries gold sub-index which was up 1.48 percent.
Australia’s October retail sales rose 0.5 percent from the previous month, the third straight month of gains. A Reuters poll had expected sales to rise by 0.3 percent.
The Nikkei 225 slipped 0.64 percent, likely dragged by yen strength which is seen as a negative as it makes Japanese exports more expensive and erodes overseas profits when repatriated.
The South Korean benchmark Kospi was down 0.7 percent.
South Korea’s revised third-quarter gross domestic product (GDP) was up 0.6 percent from the previous quarter, slightly below a 0.7 percent estimate earlier. The east Asian country remains embroiled in a political scandal involving the President Park Geun-hye, who has offered to quit from her post as opposition parties call for her impeachment.
Chinese shares stumbled after initially opening flat. The Shanghai composite was down 0.78 percent and the Shenzhen composite shed 1.19 percent. Meanwhile, in Hong Kong, the Hang Seng index dropped 1.04 percent.
The dollar eased from a 9-1/2 month high against the yen on Friday, with investors cautious ahead of a looming U.S. jobs report that could set the market’s tone in coming days.
The greenback was poised to end lower against a basket of currencies this week during which it gave up some of its recent robust gains.
The dollar index sagged 0.2 percent to 100.86, and was down 0.6 percent for the week.
The dollar index had hit a 13-1/2-year high of 102.05 last week, having rallied as U.S. bond yields surged on expectations of higher fiscal spending and a faster pace of Fed monetary tightening under President-elect Donald Trump.
The greenback fell 0.1 percent against the yen to 114.02 yen, having slipped to 113.58 yen earlier on Friday.
On Thursday, the dollar had risen to 114.83 yen, recording a gain of 13.5 percent from its Nov. 9 trough near 101 yen.
The dollar seems to be running into some profit-taking against the yen, said a trader for a Japanese bank, adding that market sentiment still seems bullish on the greenback.
“The sense I get is that people who have sold (the dollar) on rallies have taken a hit, while bulls are still doing fine,” the trader said, adding that market participants are probably looking to buy the dollar on dips.
The next catalyst could come from U.S. jobs data due later on Friday.
Economists polled by Reuters expect that U.S. employers added 175,000 jobs in November.
“The dollar could test the 115 yen threshold depending on how the U.S. jobs report turns out,” said Daisuke Karakama, market economist at Mizuho Bank.
The euro inched up 0.1 percent to $1.0670, having gained 0.9 percent so far this week.