MORNING BID-Cerré | Nasdaq
A preview of the day ahead in European and global markets from Tom Westbrook
The seasons change but the markets not so much. Asia met a limp lead from Wall Street with little confidence as things slide in a pattern of waiting for today’s US jobs data, then a long weekend in the USA.
Bonds have took a beating since Jerome Powell’s speech in Jackson Hole made it clear that the Fed was going to raise and keep rates high, and after the searing inflation numbers in Europe.
Few seem willing to sell a dollar that sweeps all before it – to push the euro below parity, the yen towards the weaker side of 140 and the yuan sending towards the psychological barrier of 7.
Later in the day, G7 finance ministers meet to try to negotiate a cap on Russian oil prices – an attempt to hurt Russian profits and help reduce energy costs.
But the eyes of the market are firmly on US nonfarm payrolls data for August, with a strong report likely to intensify the idea that rates are headed higher for longer.
Economists expect the pace of job growth to slow to 300,000 and the unemployment rate to stay at a historic low of 3.5%. Everything that happens in this stadium could raise expectations for a third game in a row 75 basis points rate hike later this month.
Once that’s settled, attention can shift to next week’s European Central Bank meeting, where prices currently have a probability of around 80%. of an increase of 75 basis points.
Main developments likely to influence the markets on Friday:
German Trade Data, Eurozone PPI, US Nonfarm Payrolls
The yen and the pound slide as the dollar gainshttps://tmsnrt.rs/3Rbhbx7
(Reporting by Tom Westbrook; Editing by Ana Nicolaci da Costa)
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