Global markets turned cautious as investors braced for a delayed US payrolls report later in the day, with hopes pinned on a softer reading that would reinforce expectations for easier monetary policy.
In the corporate sector, Ford Motor Co. said it will write off and cancel its entire electric-vehicle operation, booking a $19.5 billion loss in one of the most striking retrenchments yet from the EV push. The move comes as the European Union is expected to soften emissions rules for new cars, a shift that would effectively dilute the planned 2035 ban on internal-combustion engines and mark a significant policy reversal.
Economic data from Europe added to the downbeat tone. Germany’s private-sector activity expanded at a slower pace than expected in December, with the composite PMI falling to 51.4 from 52.4, as manufacturing slipped deeper into contraction. Across the euro area, the composite PMI eased to 51.9 from 52.8, dragged down largely by weakness in German industry.
On the geopolitical front, peace talks between the US and Ukraine continued, with discussions centered on security guarantees as efforts to reach a broader settlement carry on.
In markets, European stocks traded little changed, while Asian equities extended losses, with China and Japan down between 1.5% and 2%. US futures pointed to small declines at the open, reflecting investor caution ahead of the jobs data.
In commodities, gold slipped 0.6% to $4,308 an ounce, while major currencies traded in narrow ranges.