US pre-open: Futures rebound ahead of non-farm payrolls

US stock futures pointed to a rebound on Friday, as investors awaited what is expected to be a strong payrolls report.

The Dow Jones Industrial Average is expected to open approximately up 51 points, while the S&P 500 and the Nasdaq are set to begin the final session of the week respectively six and 10 points higher.

Non-farm payrolls in focus

Investors will closely monitor a report on non-farm payrolls for November, released at 1330 GMT, which is widely considered to be the latest hurdle between the Federal Reserve and a rate hike later this month.

However, the report, the last before December’s potentially decisive Federal Open Market Committee meeting and the last of the year, is forecast to be positive, which would clear the path for a first rate hike in almost a decade.

“The Fed’s mind is probably 95% made up at this stage and it will take something hugely significant to change it,” said Oanda’s senior market analyst Craig Erlam.

“Today, that would be a substantial downward revision to the October data and a very weak report for November, so that the total number of jobs created across the two months fell below 250,000.

“That seems extremely unlikely to me at this stage and even if that happened, I believe there would still be a strong willingness within the Fed to raise rates.”

The economic calendar also sees the release of October’s trade deficit figures at 1330 GMT.

Market participants will also hear from three Fed officials, with Philadelphia Fed president Patrick Harker set to speak at a Philadelphia Fed conference at 1515 GMT, while St Louis Fed president James Bullard and Minneapolis Fed president Narayana Kocherlakota will speak at the same event at 2045 GMT and 2110 GMT respectively.

In company news, Avon Products jumped 6.97% in pre-market trading after sources cited by the Wall Street Journal suggested the group was edging closer to a deal with private-equity firm Cerberus Capital Management.

Elsewhere, Asian stocks ended the week on a downbeat note, as investors were left disappointed by the latest round of stimulus measures introduced by the European Central Bank, while European equities headed for their worst week in over three months on the back of the ECB decision.

The dollar gained 0.14% and 0.21% against the yen and the euro respectively and was broadly flat against the pound, while gold spot slid 0.03% to $1,061.82

Oil prices gained ground as OPEC’s two-day meeting neared conclusion. West Texas Intermediate rose 1.27% to $41.61 a barrel, while Brent gained 1.28% to $44.41 a barrel.