US pre-open: Futures point to small losses ahead of jobs data

US stocks looked set to dip at the open as investors awaited Friday's jobs report.

At 1230 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all down 0.1%.

Market focus will mostly be on the non-farm payrolls report and unemployment data, set to be released at 1330 BST, with the former predicted to have risen by 160,000 last month, compared to 75,000 in May.

However, a softer-than-expected figure could influence the Federal Reserve's decision on whether or not to cut interest rates at its meeting on July 30 and 31.

Ahead of the open, CMC Markets' Michael Hewson said: "Today's US payrolls report has the potential to upset the apple cart when it comes to whether or not we can expect to see a Fed rate cut later this month, and if we do whether it will be 25 or 50 basis points.

"Currently market pricing is at a 100% certainty that we will get some form of move from the FOMC when they meet at the end of this month, despite data that while by and large is a little softer, isn’t screaming economic slowdown."

Last month, the central bank opened itself up to the possibility of easing monetary policy, stating it would "act as appropriate" to maintain the current economic expansion.

Elsewhere, geopolitical tensions in the Middle East were again in focus after the British Royal Marines claimed a large Iranian oil tanker on Thursday after it was caught attempting to take oil to Syria, in violation of EU sanctions.

Oil prices were mixed in early trade, with West Texas Intermediate down 0.78% at $56.89 a barrel, while Brent Crude was up 0.57% - changing hands at $63.66 per barrel.

On the corporate front, manufacturer Chase Corp and oil spray maker WD-40 will both publish their third-quarter results on Friday.