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Wall Street futures rise

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U.S. economy adds 151,000 jobs in February

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Bond sell off abates

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Euro heading for best week since 2009

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Confusion over Trump's tariffs leaves investors on

tenterhooks

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Focus on Powell's speech

By Tom Wilson

LONDON, March 7 (Reuters) - U.S. stock futures moved

higher and the dollar extended its losses against the yen and

euro on Friday after data showed the U.S. economy created fewer

jobs than expected last month, bolstering bets the Federal

Reserve will cut interest rates this year.

Nonfarm payrolls increased by 151,000 jobs in February,

according to the closely watched employment report, with

unemployment edging up. The report, the first under President

Donald Trump's watch, came at the end of a week marked by

confusion over U.S. trade policy and a global rise in borrowing

costs.

U.S. stock futures regained some lost ground on the data,

with Wall Street stocks suffering a buffeting this week from a

darkening outlook for U.S. growth and uncertainty over President

Donald Trump's tariff policies.

Nasdaq futures and S&P 500 futures rose 0.3%

and 0.4%, respectively after the data. Wall Street had fallen on

Thursday with the Nasdaq confirming a correction -

defined as a fall of at least 10% - since peaking in December.

The euro, on track for its best week since 2009, added to

gains, rising 0.8% to $1.0876.

The dollar, meanwhile, dropped 0.5% against the yen to

147.29, from 147.62 yen before the data.

"The market is back to pricing in three rate cuts in 2025,

but I wouldn't bank on the Fed sending any dovish signals

anytime soon," said Brian Jacobsen, chief economist at Annex

Wealth Management.

"With the unemployment rate at 4.1% and inflation still

above target, they have no reason to change their messaging

yet."

Stocks in Europe and Asia struggled for buoyancy and a steep

selloff in bonds abated, after a week marked by confusion over

U.S. trade policy and by the global rise in borrowing costs.

European stocks were down 0.7%, recovering some

earlier losses but still on track for a first weekly drop after

10 straight weeks of gains. Luxury stocks and retailers

weighed heavily.

The selloff in euro zone government bond markets triggered

by Germany's plans for a huge spending package slowed. After the

biggest two-day fall in Bunds since the 1970s, the benchmark

10-year bond yield, which moves inversely to prices,

fell to 2.82%.

Investors were a speech from Federal Reserve Chair Jerome

Powell later in the day, which could provide more clarity on the

outlook for interest rates in the world's biggest economy.

Trump on Thursday suspended tariffs of 25% he had imposed

this week on most goods from Canada and Mexico, the latest twist

in a fluctuating trade policy that has whipsawed markets and

stoked concerns over growth and inflation.

"With this being a delay rather than a lasting exemption and

with reciprocal tariffs also expected to be announced after

April 2, this leaves plenty of lingering tariff uncertainty,"

Deutsche Bank analysts wrote.

For most of the global trading day, a "risk-off" mood had

persisted.

Risk-sensitive bitcoin fell a smidgeon to $89,199.

Trump signed an executive order on Thursday to establish a

so-called strategic bitcoin reserve, built using tokens already

owned by the U.S. government that were forfeited during criminal

or civil asset forfeiture proceedings.