➤ Global stocks rise ahead of US nonfarm payroll data.
➤ China to waive tariffs on certain US products.
➤ Saudi Aramco headed for world's biggest IPO.
➤ OPEC+ poised to deepen oil production cuts.
U.S. equity futures rose with global stocks while the dollar held its ground as investors await payrolls and wages data.
Decent payroll data may keep interest rate cut expectations at bay, but if the numbers do not match headline figures from the ADP Research Institute released Dec. 4, rate cut bets could rise for the Federal Reserve's meeting next week, wrote Michael Hewson, chief market analyst at CMC Markets UK, in a daily note. Markets largely expect the Fed to keep rates unchanged at its last meeting of the year next week, according to the CME Group's FedWatch tool.
Citi analysts expect an addition of 183,000 payrolls reflecting a solid pace of job growth and the return of previously striking autoworkers, while average weekly wages are projected to rise by 0.3% on a monthly basis. "That said, risks are tilted to the downside with a stronger reaction likely to a negative surprise," they wrote.
S&P 500 futures were up 0.3%, Nasdaq 100 futures gained 0.4% and the U.S. Dollar Index stood flat at 97.42 as of 6:30 a.m. ET, two hours ahead of the nonfarm payrolls report's release.
Among European stock markets, the FTSE 100 rose 0.8% as most of its components traded higher, though Phoenix Group Holdings PLC's shares lost 0.6% as it agreed to buy ReAssure Group PLC in a £3.25 billion deal. France's CAC 40 index was up 0.4%, Germany's DAX gained 0.2% and the wider Stoxx Europe 600 rose 0.4%.
Earlier in Asia, Japan's Nikkei 225 index closed 0.2% higher, while the Shanghai SE Composite rose 0.4% and Hong Kong's Hang Seng gained 1.1%. The Chinese finance ministry said Beijing is working on exempting certain U.S. products, including some soybeans and pork, from retaliatory tariffs based on applications from individual companies, in a further sign of progress in trade talks with Washington.
Elsewhere, Saudi Arabian Oil Co. plans to raise $25.6 billion in its IPO, making it the world's largest listing that could have a profound impact on policy decisions from the biggest crude exporter.
Brent crude oil rose 0.1% to $63.45 per barrel on the ICE Futures Exchange amid reports that OPEC members agreed in principle to deepen oil production cuts until March 2020. The group is due to meet with its allies today in Vienna to seek their approval for the cuts.
Among currencies, sterling's five-day rally hit a bump as it depreciated 0.2% against the dollar, with the U.K. general election in sight. The euro was little changed while the yen appreciated 0.2% against the dollar.
In the debt market, the yield on 10-year U.S. Treasurys lost 2 basis points to 1.80%, while German bunds were broadly stable with the 10-year yield flat at just above negative 0.30%.
Gold fell 0.2% to $1,480.40 per ounce.
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The day ahead:
8:30 a.m. ET — U.S. employment situation (Econoday consensus: nonfarm payrolls 180,000 monthly; average hourly earnings 3.0% yearly; unemployment rate 3.6%)
8:30 a.m. ET — Canada labor force survey (Econoday consensus: unemployment rate 5.6%)
10 a.m. ET — U.S. consumer sentiment (Econoday consensus: 96.9)
10 a.m. ET — U.S. wholesale trade
1 p.m. ET — U.S. Baker-Hughes rig count
3 p.m. ET — U.S. consumer credit (Econoday consensus: $15.8 billion)