ORLANDO, Florida, May 7 (Reuters) - U.S. and global

stocks hit new highs before ending lower on Thursday as chip

stocks gave back some of their blistering gains, while oil

clawed back earlier losses as doubts around a U.S.-Iran peace

deal pushed Brent crude back above $100 a barrel.

In my column today, I look at the U.S. labor market ahead of

April's non-farm payrolls report on Friday. On the surface, it

seems pretty solid. But as outgoing Federal Reserve Chair Jerome

Powell said last week, it's an "unusual and uncomfortable"

balance.

If you have more time to read, here are a few articles I

recommend to help you make sense of what happened in markets

today.

1. Asia's tech giants give AI bull run a new centre of

gravity

2. EXCLUSIVE-Oil-price bets ahead of Iran war news

totalled $7 billion, reporting shows

3. Japan keeps U.S. close as it signals unlimited yen

defence

4. Trapdoor creaks for dollar if Iran war ends: Mike

Dolan

5. Blackstone, BlackRock cut value of their private

credit funds

Today's Key Market Moves

* STOCKS: Asia up strongly, but many markets playing

catch-up after holidays. EM stocks hit new highs. Europe -1%, UK

-1.6%. Brazil -2.4%. Nasdaq -0.1%, S&P 500 -0.4%, Dow -0.6%.

* SECTORS/SHARES: Nine S&P 500 sectors fall, led by

materials, industrials and energy. Tech and comms services up

less than 0.1%.

* FX: Dollar edges up, yen slips back toward 157.00/$,

Norwegian crown hugs 3-year highs after surprise rate hike.

* BONDS: U.S. yields up 2-4 bps across the curve.

* COMMODITIES/METALS: Oil slips, but rebounds sharply

from earlier lows. Brent closes above $100/bbl. Silver +3%.

Today's Talking Points

* Hawks bare their talons

Norway's central bank raised interest rates on Thursday to

counter "too high" inflation, earlier than markets had expected.

It is the second G10 central bank to tighten policy this year

after the Reserve Bank of Australia, and it won't be the last.

Policymakers seem more sensitive to the inflationary effects

of the Iran war than the growth impact. Rates futures markets

indicate the ECB and BOJ will hike next month, and the BoE and

RBNZ in July. Much depends on whether a U.S.-Iran peace deal is

struck, but right now, hawks are in the ascendancy.

* Yuan direction

China's yuan is going from strength to strength, at least

against the dollar - it is the highest in over three years and

poised to break through 6.80/$. This will help calm the waters

ahead of U.S. President Trump's visit to China next week, right?

Only so much. China-U.S. trade may be shrinking, but Beijing

is under fire for its soaring total trade surplus ($1.2 trillion

and rising) and role in re-igniting global imbalances. And it is

still intervening heavily to slow the rise of the yuan, which

critics argue is still undervalued by at least 20%.

* Jobs, jobs, jobs

U.S. non-farm payrolls data for April will be released on

Friday, and on the surface at least, there is little to worry

about. Quite the opposite - weekly jobless claims are the lowest

since the 1960s, "JOLTS" hiring is at the fastest pace in six

years, and the 4.3% unemployment rate is historically low.

While firing may be low, so is hiring. The "breakeven" rate

of job growth required to keep the unemployment rate constant

could even be negative. And then there's the threat posed by AI.

Will tech-related layoffs show up in the numbers?

What could move markets tomorrow?

* Developments in the Middle East

* Energy market moves

* China trade (April)

* Taiwan trade (April)

* Japan PMI (April, final)

* European Central Bank President Christine Lagarde and

board members Luis de Guindos and Isabel Schnabel scheduled to

speak

* Germany trade (March)

* Germany industrial production (March)

* Bank of England Governor Andrew Bailey speaks on global

imbalances

* Canada unemployment (April)

* U.S. non-farm payrolls (April)

* U.S. University of Michigan consumer sentiment, inflation

expectations (May, prelim)

* U.S. Federal Reserve officials scheduled to speak include

Governor Lisa Cook in Senegal, and Chicago Fed President Austan

Goolsbee, San Francisco Fed President Mary Daly, Vice Chair for

Supervision Michelle Bowman, and Governor Christopher Waller at

the Hoover Institution Monetary Policy Conference

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