Global stocks steady, oil climbs as markets await US jobs data

Global equity markets were steady on Friday, on track for their strongest weekly gain in three months, as optimism over corporate earnings and artificial intelligence offset fresh concerns about Middle East supply disruptions. The MSCI All-World index has risen 2.3% this week, while Europe's STOXX 600 added 0.2% on the day, supported by gains in drugmakers and technology shares.

Investor attention is now firmly on the US non-farm payrolls report due later in the day. Economists expect July job growth of 80,000, following a 57,000 increase in June, with the unemployment rate projected to hold at 4.2%. Money markets show traders are evenly split on whether the Federal Reserve will raise interest rates next month, making the data potentially decisive for the rate outlook.

JPMorgan's chief US economist Michael Feroli noted that a strong jobs number could reinforce expectations of higher-for-longer rates, while a weak print might ease yields and shift policy expectations toward a dovish path. With Fed Chair Kevin Warsh offering little guidance, analysts expect heightened volatility around the release.

In the US, Nasdaq futures rose 0.3% while S&P 500 futures were flat. Cloudflare shares surged 16% in European trading after the cloud services firm issued an upbeat forecast.

Oil prices climbed again as Middle East tensions flared. Yemen's Houthis attacked Saudi Arabia, and Riyadh warned of coordinated strikes with Iran-backed Iraqi militias. Brent crude rose 1% to $83 a barrel, though it remains set for a 7% weekly loss and well below its recent peak of $102. Iran is also reviewing a draft bill that would bar US, Israeli, and other "hostile" vessels from transiting the Strait of Hormuz, with fines of up to 20% of cargo value for violations.

Treasury yields were little changed, with the 2-year at 4.243% and the 10-year at 4.67%. The dollar held steady against the yen around 158.4, with the jobs report likely to determine the currency's next move following last week's joint US-Japan intervention. Gold rose 1.2% to $4,289 an ounce, heading for its best week since mid-January, as the dollar traded near six-week lows.