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.
→ What drives the markets:
🧱 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.
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)
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