Nearly half a million jobs are expected to reappear in the U.S. in March as the rising cost of living forces passive workers back into the labor market. Eurozone inflation hit a record high and manufacturing slowed sharply as the effects of the special operation in Ukraine first showed up in economic data. The US market will start the second quarter with a recovery after ending the first quarter on a low note, while a quarantine in China due to COVID-19 and several trading suspensions in the stock market added to concerns about the world’s second largest economy. Oil prices have moved steadily above the $100 a barrel mark. Here’s what you need to know about the financial market on Friday, April 1.

1. Payrolls showed another significant increase; focus on the participation rate

Today is payrolls day, and the monthly U.S. jobs report at 08:30 am ET (12:30 pm GMT) will round out a week of labor market data that remains tight. The monthly JOLTS survey showed that job openings are still near record highs and the layoff rate rose in March.

The country’s nonfarm payrolls are expected to grow by 490,000 jobs, which could be seen as a step toward normalization after an even bigger jump earlier in the year when COVID-19-related restrictions were lifted.

The unemployment rate is also expected to fall from 3.8% to 3.7%, while average hourly earnings growth is expected to slow from 0.6% to 0.4%, easing the pressure on the Federal Reserve as it tries to deal with outpacing inflation.

Still, perhaps the most important element of the report will be labor force participation amid suspicions that a higher cost of living will entice people back to work.

2- Eurozone inflation has broken records, UK energy prices have risen, but Russian gas is still flowing in for now

The rising cost of living in Europe is back in the spotlight on Friday; with eurozone inflation reaching 7.5% in March, the highest since the creation of the euro. The worst is yet to come given the continued rise in energy prices, so the 13-month low in the Markit PMI manufacturing index was no surprise.

In the UK, an increase in the household energy price cap is coming into effect, which will lead to an immediate and dramatic increase in bills for many consumers, especially the poor.

The situation is even worse in North Africa, where inflation is being driven by skyrocketing food prices, according to a new report from the U.N. World Food Program.

Both events are partly linked to Russia’s special operation in Ukraine, which has disrupted global trade in grain, oil and gas. However, Russian gas continues to flow to Europe after a change in new rules requiring payment in rubles. Amid spikes in spot prices, gas supply system data showed that Russia is delivering more gas to Europe than at any time in the past 4 months as buyers rely more on their long-term contracts with Gazprom (MCX:GAZP).

3- U.S. market to open higher; Ford (NYSE:F) and GM plants idle due to parts shortages

Stock indices in the US will open higher after ending the first quarter on a bad note; with all 3 major indices losing about 1.5%.

By 06:15 ET (10:15 GMT), the Dow Jones futures were up 210 points, or 0.6%, while the S&P 500 futures were also up 0.6% and the Nasdaq 100 futures were up 0.8%.

The mood is dampened by renewed fears of supply chain disruptions as restrictions due to COVID-19 in China spread, affecting more and more factories and logistics centers.

Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) said Thursday night that they will temporarily close some plants due to component shortages.

4. China factory layoffs; massive suspension of trading in real estate developers’ stocks

China’s COVID-19 data remains a source of some controversy, but the manufacturing PMI from Caixin, which covers the country’s smaller and independent enterprises, came out following the government’s official PMI, signaling a contraction in activity in March. It fell to 48.1, the lowest level in two years, from 50.4 in February.

There was also further evidence of unresolved problems in the country’s real estate sector, as the Hong Kong Stock Exchange suspended trading in the shares of more than 30 companies for failing to meet deadlines for filing annual reports. Those companies included property developer Shimao Property Holdings Ltd (HK:0813), previously considered one of the strongest in the sector, and KAISA JiaYun Technology Inc (SZ:300242), one of China’s largest foreign bond markets.

Chinese diplomats will meet with EU officials in Brussels later, but are not expected to signal any weakening of support for Russia.

5. Oil broke through the $100 mark again, OPEC+ rejection

Crude oil prices have recovered after taking a major hit earlier in the week due to U.S. President Joe Biden’s plan to unlock the Strategic Petroleum Reserve.

By 06:25 a.m. ET (11:25 GMT), WTI crude futures were down 0.1% to $100.19 a barrel, having earlier hit a high of $100.84, while Brent crude, the global benchmark, rose 0.1% to $104.85 a barrel.

That came after OPEC and its partners (primarily Russia) on Thursday routinely refused to increase production by 432,000 barrels a day from May 1. Anyone looking for additional barrels will have to look to Baker Hughes’ US rig count data, which will be released a little later, as signs of drilling activity have risen sharply in recent months as the prospects for a prolonged period of high prices have become brighter.