U.S. stock futures down 0.29
European stocks heading for worst week in 2 months
MSCI Asia exJapan index drops 2.69
Oil jumps 2

LONDON, May 6 Reuters U.S. stock futures were indicating a lower open on Friday following a slide in the previous session on U.S. rate hike expectations, though the rate outlook briefly drove the dollar to its highest in 20 years.

Asian stocks fell on worries about the hit to growth from China39;s zeroCOVID policy.

The U.S. currency was finding favour after the Federal Reserve raised rates by 50 basis points this week. The market is pricing in a more than 90 chance of a 75 bps hike in June, according to Refinitiv data.

U.S. payrolls data due later on Friday will help traders gauge the strength of the U.S. economy. Economists polled by Reuters predicted the data would show the United States created 391,000 new jobs in April, versus 431,000 a month earlier.

The trend is still for a strong and very tight labour market, which is feeding into wage increases and is an issue for inflation longer term, said Gergely Majoros, a member of the investment committee at asset manager Carmignac. This made it hard for the Fed to keep prices stable, he added.

Job creation is still too hot for the Fed to achieve its mandate.

U.S. stock index futures dropped 0.29 after the Dow Jones Industrial Average and the SP 500 both slid more than 3 overnight, and the Nasdaq Composite shed 4.99 in its biggest singleday plunge since June 2020.

European stocks fell…