* All eyes on U.S. payrolls, expected to bounce from
* Euro slips after German ruling on ECB bond-buying
* Emerging market equities see further massive outflows
* Copper set to post biggest weekly rise this year
By Blaise Robinson
PARIS, Feb 7 Stocks, oil and some base metals
climbed on Friday on hopes that a U.S. jobs report due out
shortly will ease concerns over the pace of global economic
growth, and emerging market assets got a lift following their
The euro slipped against the dollar and Bund futures rallied
after Germany's Constitutional Court referred a complaint over
the European Central Bank's flagship bond-buying programme to
the European Court.
The MSCI All-Country World index was up 0.3
percent, recovering further from a 6 percent slide that had
started in late January, the equity market's steepest pull-back
in seven months.
U.S. stock index futures were up 0.2-0.5
percent ahead of the opening bell on Wall Street.
Stock markets worldwide have been rallying since data on
Thursday showing a drop in applications for U.S. unemployment
insurance. While the data has no direct bearing on January's
employment report as it falls outside the survey period, it
boosted the mood and eclipsed recent tepid U.S. and Chinese
manufacturing data and a rout in emerging currencies.
A Reuters' poll of economists shows non-farm payrolls are
expected to have grown by 185,000 last month, snapping back from
December's three-year low.
"Following the surprisingly weak figure for December,
investors' expectations are quite low this time, so good jobs
numbers today could fuel the rebound started this week," Saxo
Banque sales trader Andrea Tueni said.
The data, due at 1330 GMT, may also impact expectations
about the pace at which the U.S. Federal Reserve will scale back
its stimulus, which last year fuelled a sharp rally in risky
assets such as equities.
London copper was up 0.3 percent on Friday, set to
post its largest weekly rise this year, boosted by the hopes for
strong U.S. jobs data. Brent crude steadied above $107 a
barrel, heading for its second weekly gain in three.
"The market is turning its attention to macro headlines and
the U.S. jobs report," VTB Capital oil strategist Andrey
Kryuchenkov said. "But we expect (Brent) to remain rangebound.
Even a better-than-expected reading will only offer limited
support as there is little on the fundamental side to keep this
Emerging market equities regained ground, with the MSCI
Emerging Market index up 0.6 percent, while battered
currencies such as the Turkish lira and the South African
rand were trading off recent lows.
The relative calm may not last, however, as data shows
investors continued to repatriate funds from emerging markets
this week, and outflows so far this year have now exceeded those
for all of 2013.
The euro was down 0.2 percent to $1.3566 and Bund futures
rose as high as 144.02, up 69 ticks on the day, after
German judges referred a complaint about the ECB's OMT
bond-buying programme to the European Court.
Although the German court said it saw substantial reasons to
suggest the OMT exceeds the ECB's mandate, the European Court
has a reputation for giving federalist rulings that take a broad
view on European institutions' powers.
The announcement at the height of the bloc's sovereign debt
crisis in September 2012 of the as-yet unused programme, which
promises potentially unlimited sovereign bond purchases by the
ECB, is widely credited with stabilising the euro.
"The euro fell, but only slightly. That's obviously
justified if you think the European Court of Justice is going to
be more ECB-friendly," said Ulrich Leuchtmann, head of currency
research at Commerzbank in Frankfurt.
Asset performance in 2014: