Markets Brace for U.S. Payrolls Data Amid U.S.-China Trade Tensions

Global stock markets remained subdued on Friday as investors awaited crucial U.S. payrolls data. Meanwhile, Tesla shares staged a pre-market recovery after a public dispute between President Donald Trump and Elon Musk. Recent soft economic data has fueled concerns over potential U.S. stagflation and has increased pressure on the Federal Reserve to consider easing monetary policy.

Investors are closely examining a call between President Trump and Chinese President Xi Jinping, which could help alleviate the prolonged trade tensions between the United States and China, the two largest global economies. The possibility of further discussions is crucial for the market's outlook. 'That's likely the primary focus for markets,' said Jason da Silva, global investment strategy director at Arbuthnot Latham.

Tesla shares, battered by a 14% drop overnight, rose 5% in pre-market trading following a Politico report that the White House scheduled a call between CEO Elon Musk and President Trump. European stocks opened flat, in line with Asian markets, while Nasdaq and S&P 500 futures showed modest gains. The euro saw minimal fluctuations, pressured by German export data, yet clinging to weekly gains.

(With inputs from agencies.)