Stocks rose in Europe on Friday and U.S. equity futures edged higher in the run-up to a key American jobs report. The dollar climbed and Treasury yields.

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Stocks rose in Europe on Friday and U.S. equity futures edged higher in the run-up to a key American jobs report. The dollar climbed and Treasury yields ticked up.

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Energy and chemicals shares boosted the Stoxx Europe 600 Index, extending its biggest weekly advance in two months. Futures on the S&P 500 and the Dow Jones Industrial Average edged up, while Japanese and South Korean shares advanced following overnight gains on Wall Street. China's markets were closed for a holiday. U.S.-Mexico trade talks are set to resume Friday, with Vice President Mike Pence saying his country still plans to impose tariffs on its neighbor next week. The yuan slipped after People's Bank of China Governor Yi Gang said in an interview with Bloomberg that the nation has tremendous room to adjust policy.

All eyes are on the U.S. employment report due later Friday for clues on the strength of the economy, after Federal Reserve Chairman Jerome Powell signaled this week he's open to easier policy as trade tensions persist. Investors are betting on a 93% chance of a rate cut by September, Fed fund futures show. Powell's counterpart in Europe, Mario Draghi, indicated Thursday he will react to any deterioration in the outlook for the region's economy, though some had expected a clearer signal he's willing to further loosen policy.

"It appears too early to call for the next round of liquidity-on fueling all asset classes," said Alexander Kraemer, head of cross asset strategy at Commerzbank AG. "Markets are apparently not yet fully giving in to the central bank put."

Elsewhere, oil climbed above $53 a barrel and gold edged lower after strong gains this week.

Here are some notable events coming up:

  • Theresa May steps down on Friday as leader of the Conservative Party.
  • Friday's U.S. jobs report is projected to show payrolls rose by 175,000 in May, unemployment held at 3.6%, a 49-year low, and average hourly earnings growth sustained a 3.2% pace.
  • Finance ministers and central bank governors from the G-20 nations gather in Fukuoka, Japan this weekend.

These are some of the main moves in markets:

Stocks

  • The Stoxx Europe 600 Index climbed 0.5% as of 8:14 a.m. London time, the highest in more than a week.
  • Futures on the S&P 500 Index gained 0.1%, the highest in more than two weeks.
  • The U.K.'s FTSE 100 Index climbed 0.5%, hitting the highest in more than two weeks with its fifth consecutive advance.
  • The MSCI Emerging Market Index dipped less than 0.05%, the lowest in a week.
  • The MSCI Asia Pacific Index rose 0.2%.

Currencies

  • The Bloomberg Dollar Spot Index climbed 0.2%, the highest in a week.
  • The euro fell 0.1% to $1.1267.
  • The British pound gained 0.1% to $1.2704, the strongest in two weeks.
  • The Japanese yen dipped 0.1% to 108.48 per dollar, the weakest in more than a week.

Bonds

  • The yield on 10-year Treasuries gained less than one basis point to 2.12%.
  • Britain's 10-year yield rose two basis points to 0.842%.
  • Germany's 10-year yield gained one basis point to -0.23%, the biggest rise in more than two weeks.

Commodities

  • Gold dipped 0.2% to $1,333.27 an ounce, the first retreat in more than a week.
  • West Texas Intermediate crude gained 1.6% to $53.44 a barrel.

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