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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 caution ahead of January's employment report to keep a cover on stocks into Friday's open - with resilient long-dated Treasuries squashing the yield curve to its flattest for the year.

Similar to Microsoft and Alphabet over the previous couple of weeks, Amazon disappointed Wall Street late Thursday as issue about cloud computing splashed profits and earnings projections and sent its stock down 4% overnight.

The latest underwhelming outlook from the "Magnificent 7" leading U.S. tech firms control an otherwise upbeat S&P 500, with questions about heavy invests in synthetic intelligence piqued again by the advancement of China's cheap DeepSeek design.

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

But the day's macro occasions will likely take precedence, with the release of the January U.S. work report and long-term modifications of previous job production.

Job development most likely slowed to 170,000 in January from just over quarter of million the prior month, partially restrained by wild fires in California and cold weather throughout much of the country.

Those distortions include a more complication to the readout, which will consist of yearly benchmark revisions, brand-new population weights and updates to the seasonal adjustments.

The week's sweep of other labor market reports, however, do point to some cooling of conditions - with job openings falling, layoffs rising and weekly jobless claims ticking higher.

With the Federal Reserve currently trying to parse the impact of President Donald Trump's brand-new economic policies, payroll distortions just cloud the picture even further.

And as Fed authorities insist they can wait and see for a bit, Fed futures remain trained on 2 more interest rate cuts this year - resuming about midyear.

The Treasury market is more encouraged though - sustaining the early week's sharp drop in 10-year yields into today's tasks report and seeing the 2-to-10 year yield curve compress to the flattest it's remained in 6 weeks.

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

Treasury Secretary Scott Bessent has likewise insisted the brand-new government's focus would be on getting long-lasting rates down rather than pushing the Fed to ease too soon.

Reuters analysis reveals Trump has put holds on 10s of billions of dollars in congressionally-approved spending for jobs throughout the U.S. that vary from Iowa soybean farmers embracing greener practices to a Virginia railway growth.

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

But with the Fed on hold, main banks worldwide continued alleviating rates of interest apace today - partly on concerns 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 choosing a bigger half point reduction. Sterling deteriorated initially, however has actually steadied given that.

Mexico's main bank likewise cut its interest rate by 50 basis points on Thursday - stating it might cut by a similar magnitude in the future as inflation cools and after the economy contracted slightly late in 2015.

The European Reserve bank, meantime, is expected to release its updated estimate of what it sees as a "neutral" rates of interest in the future Friday.

That's essential as it informs the ECB debate about whether it requires to cut rates listed below what thinks about neutral to restore the flagging euro zone economy. It's presently seen around 2% - 75bps below the standing policy rate.

In thrall to the payrolls release, the dollar index was stable on Friday. Dollar/yen briefly notched a brand-new low for wiki.eqoarevival.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 greatest lender, systemcheck-wiki.de was up 7.1% after it posted record annual earnings and introduce a new share buyback programme.

Key developments that should offer more direction to U.S. in the future Friday: * U.S. January work report, University of Michigan February customer survey, December customer credit; Canada Jan work report; Mexico Jan inflation * European Central Bank updates its estimate 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 profits: Cboe Global Markets, Fortive, Kimco Realty * Japan Prime Minister Shigeru Ishiba sees United States

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