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Financiers brace for US payrolls information, euro flat amid France turmoil

Investors waited for U.S. payrolls data on Friday to see if it challenged or cemented expectations of a Federal Reserve rate cut this month, while the euro stumbled towards a flat week versus the dollar as France was grasped by political chaos.

European stocks edged up 0.2% after market open, while Britain's FTSE 100 dipped 0.1%, as investors digested news that insurance provider Aviva had consented to purchase rival Direct Line for 3.6 billion pounds ($ 4.6 billion).

Investors were training their sights on the crucial U.S. payrolls report due later on in the day. U.S. stock futures were broadly flat ahead of Wall Street open.

Forecasts are centred on a rise of 200,000 jobs in November, rebounding from a soft 12,000 gain in October when the outcome was affected by hurricanes and strikes. Futures markets put a. 68% possibility on a rate cut by the Fed on Dec. 18.

It's going to be extremely carefully seen ... If we don't get a. huge surprise around that tasks number, I believe the marketplace will. practically take the reality the Fed will cut again in its. meeting, said Shaneel Ramjee, senior investment supervisor at. Pictet.

The Aviva swoop on Direct Line in Britain was further. evidence of a pick-up in dealmaking throughout markets, Ramjee. included. Throughout both Europe and the U.S., these offers are. beginning to get done, and that simply implies more activity in the. economy, he stated.

In Asia, MSCI's broadest index of Asia-Pacific shares. outside Japan reversed earlier losses to be up. 0.2% thanks to a rally in Chinese shares, making up for investor. care around political ructions in South Korea.

Chinese shares had climbed to three-week highs as financiers. scooped up technology shares ahead of a top-level policy conference. next week that will set the program and targets for China's. economy next year.

The threat premium investors demand to hold French debt rather. than German Bunds dropped to a brand-new two-week short on Friday, after. President Emmanuel Macron said he would designate a brand-new prime. minister soon to get a 2025 budget plan approved by parliament.

The euro had rallied on Thursday, on market relief that. France had avoided a more volatile political outcome in the meantime. The euro was broadly flat on the day and the week at $1.0586.

BITCOIN REVERSAL

Bitcoin, which struck the $100,000 mark for the very first. time as financiers bet on a friendly U.S. regulative shift, ran. into profit-taking. It tumbled as far as $92,092 and was last. down 0.7% on the day at $98,288.

This spike in volatility over the last 24 hr has the. trademarks of a timeless blow-off top, stated Tony Sycamore,. expert at IG.

While we don't see this as completion of the Bitcoin bull run,. it does signal we are entering a debt consolidation phase in the. days/weeks ahead.

In the forex market, the U.S. dollar index. was broadly the same at 105.78, and remained pinned near. three-week lows.

Treasuries were primarily steady on Friday. The two-year. yield held at 4.16%, while 10-year standard Treasury. yields were flat at 4.178%.

Oil costs fell as the decision from OPEC+ to postpone a. prepared walking in output to April highlighted issues about weak. demand. Brent and U.S. unrefined futures both fell 1%. to $71.35 and $67.59 a barrel respectively.

Gold prices inched greater on Friday, up 0.3% to $2,639 per. ounce, however were headed for a 2nd straight week of. declines. ($ 1 = 0.7836 pounds)

(source: Reuters)