Global stocks steady ahead of US jobs data; oil slips despite Gulf tensions

Global equity markets were steady on Friday, on track for their strongest weekly gain in three months, as investors set aside geopolitical worries and focused on the upcoming US jobs report. The MSCI All-World index has climbed 2.4% this week, while Europe's STOXX 600 added 0.6% on the day, supported by gains in drugmakers and technology shares.

All attention is now on the US non-farm payrolls data due later in the day. Economists expect July payrolls to have risen by 80,000, following a 57,000 increase in June, with the unemployment rate seen holding at 4.2%. The numbers could prove decisive for the interest-rate outlook, as money markets show traders evenly split on whether the Federal Reserve will raise rates next month.

Analysts suggest the report could trigger outsized market moves, given the Fed's recent reluctance to offer clear guidance. "With yields and inflation still the key risks for stocks, we expect Friday's NFP to trade as a 'good news is bad news' print," said Michael Feroli, chief US economist at JPMorgan. A strong reading would reinforce expectations of higher-for-longer rates, while a soft number could ease yields and shift policy expectations toward a dovish path.

In pre-market trading, Nasdaq futures rose 0.6% and S&P 500 futures gained 0.3%. Cloudflare shares jumped 16% after the cloud services provider issued an upbeat forecast.

Oil prices reversed course, with Brent crude falling 0.7% to around $82 a barrel, as investors shrugged off warnings from Saudi Arabia about potential Houthi attacks. Riyadh has said coordinated strikes by Yemen's Iran-aligned Houthis and Iraqi militias were imminent. Meanwhile, Iran is reviewing a draft bill that would bar US, Israeli, and other "hostile" vessels from transiting the Strait of Hormuz, with proposed fines of up to 20% of a ship's cargo value.

Treasury yields were little changed, with the 2-year note at 4.243% and the 10-year at 4.67%. The dollar held steady, leaving the yen around 158.3 per dollar. Gold rose 2% to $4,322 an ounce, heading for its strongest week since mid-January, as the dollar traded near six-week lows.