Markets rise, but wait for US employment data to gauge interest rates

Barcelona, ​​Spain – Stocks will fluctuate on the pace of the US employment report. Could data tracking the distribution of vacancies in the public and private sectors give an idea of ​​whether the North American economy is heating up and signal new interest rate hikes by the Federal Reserve (Fed)? by the economy – or it will peak in recession. Humor is susceptible to uncertainty.

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US index futures tried to position themselves in positive territory. In Europe, the rally in stocks was most intense, with the STOXX 600 ending five days of losses — with automakers and financial services companies standing out.

Dollar falls after hitting record highs At the same time, oil prices rose, halting weekly declines, pending a decision at the OPEC+ meeting on supply. Meanwhile, Russia is poised to resume gas supplies through its main pipeline, a relief to investors, even as fears persist of further disruptions during the European winter.

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🧱 confirmed. Recent data on the manufacturing sector and US jobless claims showed a strong and resilient economy, bolstering the thesis that the central bank’s hand will continue to weigh on monetary spending, with a 0.75 percent increase in interest rates expected at the meeting. At the end of this month.

🧭 Today’s north. The report on North America Labor Market will provide investors with a new analytical component. An estimated 300,000 jobs were created in August, with wages up more than 5%. Higher figures could have negative effects on stocks and bonds, as they could signal stronger central bank action.

🐻 Global bonus Bear market. Central bankers’ desire to control inflation with higher interest rates has hit the sovereign bond market in recent sessions. For the first time in a generation, these assets are entering a bear market. Bloomberg Global’s aggregate total return investment-grade government and corporate bonds have fallen more than 20% from their 2021 peak, the biggest decline since inception in 1990.

🟢 Yesterday Bags: Dow Jones Industrials (+0.46%), S&P 500 (+0.30%), Nasdaq Composite (-0.26%), Stoxx 600 (-1.80%), Ibovespa (+0.81%)

While most indicators closed in the blue, sentiment remained cautious, which contributed to the dollar’s appreciation. The currency hit a record high on speculation that the latest macroeconomic data will prompt the US Federal Reserve to raise rates by 0.75 percentage points at its next meeting later in the month.

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On the agenda

This is the scheduled schedule for today:

• America: Non-Farm Employment Report (Wages)/August; Govt Pay/August; Unemployment Rate/August; Durable Goods Orders Excl. Security/July; Orders for Industry/July; Vehicle sales

• Europe: Eurozone (IPP/Jul); Germany (trade balance/July); France (government budget balance/July); Spain (change in unemployment)

• Latin America: Brazil (IPC/Fipe, Industrial Production/July); Argentina (Tax Revenue)

(With information from Bloomberg News)