A take a look at the day ahead in U.S. and international markets from Mike Dolan Another forecast miss from a U.S. megacap combines with care ahead of January's work report to keep a lid on stocks into Friday's open - with buoyant long-dated Treasuries squashing the yield curve to its flattest for the year.

Just like Microsoft and Alphabet over the past number of weeks, Amazon dissatisfied Wall Street late Thursday as issue about cloud computing doused revenue and earnings forecasts and sent its stock down 4% over night.

The most current underwhelming outlook from the "Magnificent 7" top U.S. tech companies reins in an otherwise upbeat S&P 500, with questions about heavy invests on expert system ignited again by the development of China's cheap DeepSeek model.

The DeepSeek buzz, by contrast, continues to fire up Chinese stocks. They included another 1%-plus earlier on Friday despite ongoing issues about an installing Sino-U.S. trade war and Monday's due date for Beijing's retaliatory tariffs.

But the day's macro events will likely take precedence, with the release of the January U.S. employment report and long-lasting modifications of previous task production.

Job development most likely slowed to 170,000 in January from simply over quarter of million the previous month, setiathome.berkeley.edu partly restrained by wild fires in California and cold weather condition throughout much of the country.

Those distortions include an additional complication to the readout, which will include annual benchmark revisions, new population weights and updates to the seasonal changes.

The week's sweep of other labor market reports, wiki.fablabbcn.org however, do point to some cooling of conditions - with job openings falling, layoffs increasing and weekly out of work claims ticking higher.

With the Federal Reserve currently trying to parse the effect of President Donald Trump's new financial policies, payroll distortions simply cloud the photo even further.

And as Fed authorities insist they can wait and see for a bit, Fed futures remain trained on two more interest rate cuts this year - resuming about midyear.

The Treasury market is more urged though - sustaining the early week's sharp drop in 10-year yields into today's jobs report and seeing the 2-to-10 year yield curve compress to the flattest it's remained in six weeks.

Helping the long end today has been reassuring signals from the Treasury's quarterly reimbursing report that a "calling out" of financial obligation auctions to longer maturities is not yet in the works, chessdatabase.science as many had actually feared.

Treasury Secretary Scott Bessent has likewise insisted the new government's focus would be on getting long-term rates down instead of pressuring the Fed to relieve prematurely.

Reuters analysis reveals Trump has actually placed hangs on 10s of billions of dollars in congressionally-approved costs for tasks across the U.S. that range from Iowa soybean farmers embracing greener practices to a Virginia railway expansion.

Bessent likewise doubled down on his view the administration wishes to retain a "strong dollar" policy. But he colored that with a sideswipe. "What we wear ´ t want is other nations to damage their currencies, to manipulate their trade."

But with the Fed on hold, main banks worldwide continued easing interest rates apace this week - partially on issues a trade tariff war will weaken their economies.

With a sharp cut in its UK growth projection, the Bank of England cut its policy rate by a quarter point on Thursday - with 2 of its policymakers electing a bigger half point decrease. Sterling damaged at first, but has actually steadied considering that.

Mexico's main bank also cut its interest rate by 50 basis points on Thursday - saying it might cut by a comparable magnitude in the future as inflation cools and after the economy contracted somewhat late last year.

The European Reserve bank, meantime, is expected to release its upgraded quote of what it views as a "neutral" interest rate later Friday.

That's crucial as it notifies the ECB argument about whether it requires to cut rates below what thinks about neutral to revive the flagging euro zone economy. It's currently seen around 2% - 75bps below the standing policy rate.

In thrall to the payrolls release, the dollar index was steady on Friday. Dollar/yen briefly notched a brand-new low for smfsimple.com the year, nevertheless, as Bank of Japan tightening up speculation simmers.

In Europe, stocks stalled near record highs as the heavy incomes season there unfolded.

Banks there have actually a been a standout winner today and again on Friday. Danske Bank, Denmark's biggest lending institution, was up 7.1% after it posted record annual revenues and release a new share buyback program.

Key developments that must provide more direction to U.S. markets later on Friday: * U.S. January work report, University of Michigan February customer study, December customer credit; Canada Jan work report; Mexico Jan inflation * European Central Bank updates its price quote of "R *" neutral rate of interest * Federal Reserve Board Governors Michelle Bowman and Adriana Kugler speak; Bank of England Chief Economist Huw Pill speaks * U.S. business earnings: Cboe Global Markets, Fortive, Kimco Realty * Japan Prime Minister Shigeru Ishiba sees United States

(By Mike Dolan, modifying by XXXX mike.dolan@thomsonreuters.com)