Global Markets Hold Their Breath Amid U.S. Payrolls Anticipation

Global stock markets remained subdued on Friday as investors braced for crucial U.S. payrolls data. Meanwhile, Tesla shares regained some ground in pre-market trading after a public dispute between President Donald Trump and billionaire Elon Musk. Recent softness in economic data has heightened market concerns over potential stagflation, putting pressure on the Federal Reserve to consider easing monetary policy.

Investors are also closely monitoring developments between the U.S. and China following a phone call between President Trump and Chinese President Xi Jinping. The possibility of renewed trade negotiations could ease tensions between the two largest economies, potentially fueling market recovery after months of uncertainty. Jason da Silva, global investment strategy director at Arbuthnot Latham, emphasized the significance of these developments for market trends.

Despite Tesla shares falling 14% overnight, wiping out $150 billion in market value, they showed a 5% recovery in pre-market trading after reports of a scheduled call between CEO Musk and Trump. This comes as Tesla shares in Frankfurt gained 4%. Overall, European stocks remained flat following similar trading trends in Asia, while futures for Nasdaq and S&P 500 showed slight gains. The euro experienced fluctuations against the dollar amid an interest rate decision by the European Central Bank.

(With inputs from agencies.)