A take a look at the day ahead in U.S. and international markets from Mike Dolan Another projection miss out on from a U.S. megacap integrates with care ahead of January's employment report to keep a cover on stocks into Friday's open - with buoyant 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 dissatisfied Wall Street late Thursday as issue about cloud computing doused profits and profit forecasts and sent its stock down 4% overnight.

The most current underwhelming outlook from the "Magnificent 7" leading U.S. tech firms check an otherwise positive S&P 500, with concerns about heavy invests in expert system ignited again by the development of China's inexpensive DeepSeek design.

The DeepSeek buzz, by contrast, continues to fire up Chinese stocks. They included another 1%-plus earlier on Friday in spite of ongoing concerns 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. employment report and long-term revisions of previous task creation.

Job development likely slowed to 170,000 in January from just over quarter of million the prior month, partly restrained by wild fires in California and winter across much of the country.

Those distortions add a further complication to the readout, which will include annual benchmark revisions, archmageriseswiki.com new population weights and updates to the seasonal changes.

The week's sweep of other labor market reports, nevertheless, do indicate some cooling of conditions - with job openings falling, layoffs rising and weekly out of work claims ticking higher.

With the Federal Reserve already trying to parse the effect of President Donald Trump's brand-new financial policies, payroll distortions just cloud the image even further.

And as Fed authorities insist they can wait and see for a bit, Fed futures remain trained on 2 more rates of interest 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 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 this week has been assuring 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 actually feared.

Treasury Secretary Scott Bessent has likewise insisted the brand-new federal government's focus would be on getting long-term rates down rather than pressing the Fed to alleviate prematurely.

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

Bessent also doubled down on his view the administration wishes to retain a "strong dollar" policy. But he colored that with a sideswipe. "What we put on ´ t desire is other nations to compromise 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 development projection, the Bank of England cut its policy rate by a quarter point on Thursday - with two of its policymakers choosing a larger half point reduction. Sterling weakened initially, wiki.dulovic.tech but has actually steadied since.

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

The European Central Bank, meantime, is expected to release its upgraded price quote of what it sees as a "neutral" rate of interest later on Friday.

That is very important as it informs the ECB dispute about whether it requires to cut rates listed below what considers neutral to restore the flagging euro zone economy. It's currently seen around 2% - 75bps listed 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 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 a been a standout winner this week 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 advancements that ought to offer more direction to U.S. markets in the future Friday: * U.S. January employment report, University of Michigan February consumer survey, December consumer credit; Canada Jan work report; Mexico Jan inflation * European Reserve 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. corporate revenues: Cboe Global Markets, Fortive, wiki-tb-service.com Kimco Realty * Japan Prime Minister Shigeru Ishiba visits United States

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