In Asian Equity Markets Japan’s Nikkei share average fell on Friday on weakness in most sectors, with banking stocks down on worries that domestic bond yields would be kept low after the central bank conducted a special bond purchase operation to curb rising yields. Kyocera Corp fell 6.6 percent and was the biggest negative contributor to the Nikkei after it cut its annual net profit outlook. The Nikkei fell 0.9 percent to 23,274.53. For the week, it printed a 1.5 percent decline. Bank shares, which rose the previous day after some banks posted upbeat earnings results, lost ground. Mitsubishi UFJ Financial Group shed 1.4 percent, Sumitomo Mitsui Financial Group fell 1.2 percent and Mizuho Financial Group declined 1.1 percent. Bucking the weakness, Kobe Steel jumped 5.8 percent after it reinstated its annual profit forecast. The broader Topix shed 0.3 percent to 1,864.20, with 26 of its 33 sectors falling.

In Currency Markets the US dollar nursed losses against a basket of currencies on Friday and was on track for a weekly fall as investors focused on renewed economic strength in the Euro-zone. The yen, meanwhile, largely shrugged off a special bond purchase operation by the Bank of Japan to stem the rise in Japanese bond yields which had tracked their global peers higher. The dollar index, which tracks the greenback against a basket of six major rivals, was nearly flat on the day at 88.701, holding above a three-year low of 88.429 set one week ago but still down 0.4 percent for the week. The euro edged down 0.1 percent on the day to $1.2499, but remained within sight of last week’s 3-year high of $1.2538. For the week, it was up 0.6 percent. Against its Japanese counterpart, the dollar was slightly higher on the day at 109.50, holding above a four-month nadir of 108.28 hit a week ago.

In Commodities Markets oil rose for a third day on Friday after a survey showed strong compliance with output cuts by OPEC and others including Russia, offsetting concerns about surging U.S. production. Brent futures, the global benchmark, were up 19 cents, or 0.3 percent, at $69.84 a barrel. U.S. West Texas Intermediate (WTI) crude was up 28 cents, or 0.4 percent, at $66.08 a barrel. Production by the Organization of the Petroleum Exporting Countries (OPEC) rose in January from an eight-month low as higher output from Nigeria and Saudi Arabia offset a further decline in Venezuela and strong compliance with a supply reduction pact. Palladium fell to its lowest since Dec. 18 at $1,013.72 on Thursday and is on track to its worst weekly fall since the week-ending May 19, 2017. Prices are down over 5 percent this week and have fallen $124 since touching a record high at $1,138 on Jan. 15.

In US Equity Markets indexes gave up early gains on Thursday as bond yields rose and technology stocks retreated ahead of a host of high-profile earnings. Banks, which benefit from higher interest rates, led the S&P 500 financials to a 1.0 percent gain, with Goldman Sachs helping to push the Dow into positive territory. Of the 11 major sectors of the S&P 500, four posted gains. The S&P 500 lost 1.83 points, or 0.06 percent, to 2,821.98 and the Nasdaq Composite fell 25.62 points, or 0.35 percent, to 7,385.86. UPS was down 6.1 percent after it reported fourth-quarter profit that was hurt by higher holiday season shipping costs. The company was the second-biggest percentage loser on the S&P 500. Other notable stock movers included eBay, up 13.8 percent after its earnings report, and its announcement that it would move away from PayPal  as its main payments partner. PayPal shares slid 8.1 percent.

In Bond Markets the U.S. Treasuries market started February on a sour note with the 10-year yield hitting a near four-year peak on Thursday.  Benchmark 10-year Treasury yields reached a fresh near four-year high at 2.786 percent. It was closed at 2.784 percent, up 6 basis points on the day. The 30-year bond yield rose above the 3 percent mark to its highest level since last May. The Treasury said on Wednesday it planned faster growth in two-year and three-year debt issuance versus the rise in longer-dated supply. Japanese government bond prices recovered from earlier losses after the Bank of Japan acted decisively on Friday to curb a rise in bond yields, offering “unlimited” buying in long-term Japanese government bonds. The BOJ offered to buy 10-year JGBs at the yield of 0.110 percent, the same level it had offered unlimited buying twice last year. The benchmark 10-year cash JGB yield edged down to 0.090 percent, the same level as its previous close, from 0.095 percent touched earlier.

Today’s inflection points

• 10:30 GMT+1 GBP PMI construction
• 11:00 GMT+1 EUR PPI
• 14:30 GMT+1 USD Non farm payrolls
• 16:00 GMT+1 USD University of Michigan Confidence, final
• 21:30 GMT+1 USD Fed’s Williams (voter, neutral) speaks