Global Markets See Volatility Ahead of Non-Farm Payroll Data

Global markets were marked by uncertainty and volatility on Friday as investors awaited the release of the non-farm payroll data, which is expected to provide crucial insights into the Federal Reserve's interest rate path. The US dollar strengthened against most G10 currencies, while the yen remained largely unchanged at around 158.40 per dollar.

Asia-Pacific equities slipped 0.2%, with South Korean stocks leading losses by more than 1%. The yield on the 10-year U.S. Treasury note held steady at 4.68%, having climbed 7 basis points during US trading hours. Oil prices rose amid uncertainty over the prospects of a deal concerning the Strait of Hormuz, while bond markets declined under pressure from inflation concerns.

According to Iranian local media, Iran would seek to restrict the passage of US and Israeli vessels through the Strait of Hormuz and require countries it deems hostile to pay compensation before being permitted to transit this strategic waterway. Bloomberg strategist Mark Cranfield noted that both WTI and Brent contracts hit their session highs as investors anticipate a potential US response amid reports that Iran plans to restrict passage through the Strait of Hormuz for countries it considers hostile.