Investing.com - Here are the top five things you need to know in financial markets on Friday, April 7:
1. Employment report in spotlight
On Friday’s macro calendar, all eyes will focus on the U.S. Labor Department’s March employment report at 8:30AM ET (12:30GMT).
The consensus forecast is that the data will show jobs growth of 180,000, following an increase of 235,000 in February.
The unemployment rate is forecast to hold steady at 4.7%, while average hourly earnings are expected to rise 0.2% after gaining the same amount a month earlier.
With the U.S. labor market widely considered to be at, or near, full employment by analysts and Federal Reserve (Fed) officials alike, the March employment report released on Friday may see a lackluster reaction in markets even if the data ends up weaker than expected.
2. Putin critiques U.S. attack on Syria
U.S. President Donald Trump ordered a cruise missile attack against a Syrian airfield on Thursday night after accusing Bashar al-Assad’s regime of using chemical weapons to kill scores of civilians, an act Trump called “an affront to humanity.”
A spokesperson for Vladmir Putin said the Russian President regards the U.S. attacks on Syria as an aggression against a sovereign state in violation of the norms of international law that would deal a significant blow to relations between Washington and Moscow.
3. U.S. missile attack on Syria puts markets on edge
The order of the missile attack on Syria in what was the Trump administration’s first military strike initially jolted financial markets when the news broke with global equities taking a downturn and investors piling into safe haven assets such the yen, gold and U.S. 10-year Treasuries.
Nerves seemed to have calmed since the attack though with European stocks and U.S. futures moving off intraday lows.
At 4:58AM ET (8:58GMT), the benchmark Euro Stoxx 50 lost 0.54%, while Germany's DAX shed 0.57% and London’s FTSE 100 fell 0.11%.
Meanwhile, U.S. futures pointed to a lower open. The blue-chip Dow futures slipped 0.08%, S&P 500 futures traded down 0.14% and the Nasdaq 100 futures lost 0.13%.
4. Trump and China’s President Xi prepare to get down to business
After the leaders of the world’s two largest economies underwent their first formal dinner a day earlier, they will begin wading through discussions of trade and foreign policy on Friday.
Trump has criticized China of unfair trade deals and swore during his campaign to label the country a currency manipulator on his first day of office, though he never fulfilled that promise.
According to Xinhau News, Chinese President Xi Jinping has shown himself willing to work together with Trump to forge new ties and push forward cooperation on investment, infrastructure and energy.
5. Oil prices rise on speculation of military effect on supplies
As news of the attack on Syria hit the wires, oil prices soared more than 2% on concerns the military intervention could affect supplies, but have since pared gains as investors appeared to take the possibility off the table.
U.S. crude oil futures gained 1.22% to $52.33 at 4:59AM ET (8:59GMT), while Brent oil traded up 1.07% to $55.48.
Meanwhile, market participants turn attention to Baker Hughes rig count for details on U.S. drilling activity.
Last week, the oilfield services firm reported its U.S. rig count rose by 10 to 662, it was the eleventh straight weekly increase.