U.S. futures were mixed in muted early European trade. Investors stood their ground ahead of a hotly anticipated jobs report and potential progress in Middle East talks.
Brent crude oil rose above $83 a barrel, up around 0.9%, amid the continued absence of a resolution to talks around reopening the Strait of Hormuz. U.S. Treasury yields rose as oil gained, while the dollar was flat.
Nonfarm payrolls data for July will be watched especially closely for clues to the Federal Reserve's rate plotting path, as Chairman Kevin Warsh pivots the Fed away from providing forward guidance. A hotter-than-expected print could help reignite market expectations for rate hikes later this year.
Nasdaq futures led major U.S. indexes amid calmer premarket trade in artificial-intelligence-related stocks after recent volatility. Berkshire Hathaway is among companies reporting earnings Friday.
--In early trading, Brent crude rose 0.9% to $83.27 a barrel, while WTI futures are up 0.6% to $77.79 a barrel. Mediators said the main negotiators quickly embraced a proposal to divide traffic into an inbound lane near Iran and an outbound lane near Oman, The Wall Street Journal reported. However, while an agreement would ease a key geopolitical risk, the broader conflict would remain far from settled, according to analysts. "Despite clear signs of progress in recent days, the tenor of the rhetoric and growing distrust between the U.S. and Iran mean things could go from bad to worse once again," according to ING. "There's plenty of risk and uncertainty to this view."
--In the U.S., futures for the S&P 500 were up 0.1% while the Dow Jones Industrial Average slipped 0.1%. Nasdaq futures rose 0.3%.
--Equity markets across Asia were mixed. South Korea's Kospi fell 0.5% after swinging between mild gains and losses throughout the trading day. Japan's Nikkei 225 index fell 0.1%, whereas Hong Kong's Hang Seng gained 0.4%. China's benchmark Shanghai Composite gained 1%.
--European indexes largely edged higher in cautious trade. The Europe-wide Stoxx 600 added 0.2%, led by software and healthcare sectors. London's FTSE 100 edged up 0.2%, with oil majors gaining as oil ticks higher. A Diageo rally continues into a second day, with the stock up 1.5%. The German DAX gains 0.4%. Software giant SAP gains 3.5%, though Daimler Truck Holding slips 2.9% after posting earnings. In Paris, the CAC 40 is 0.3% up as Dassault Systemes adds 2.4%, while Thales gains 1.9%. Italy's FTSE MIB is flat, while the Spanish IBEX 35 slips 0.3% as banking stocks weaken. The AEX edges 0.1% lower in Amsterdam.
--The DXY dollar index traded flat at 99.947.
--The 10-year Treasury yield rose 0.4 basis points to 4.674%.
--Yields on eurozone government bonds rose due to oil prices moving higher. Ten-year German Bund yields rose 2.4 basis points to 3.144%.
-Bitcoin fell 0.2% to $64,301.
--Gold prices were on track for their largest weekly gain since January. In early trading, New York gold futures rose 1% to $4,343.50 a troy ounce. Bullion has drawn support from a pullback in oil prices this week, as diplomatic efforts to reopen the Strait of Hormuz eased fears of prolonged supply disruptions and reduced inflation concerns. Lower inflation expectations have tempered expectations for Fed rate increases, benefiting non-yielding gold.
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