Holiday to reduce business liquidity at the beginning of the week; iron ore prices in China recorded their biggest daily drop in almost two years.
New York futures indices start the week in the negative territory, with investors preparing for a week full of important indicators, including the US employment report (payroll), ISM surveys, Beige Book, and US trade balance data.
Although futures have opened, US equity and bond markets are closed on this Monday (2) due to Labor Day holiday, which is expected to reduce business liquidity at the beginning of the week.
United StatesThe payroll numbers are the most important of the week and should indicate the temperature of the US labor market. Moreover, they will be the last data of this kind before the next meeting of the Federal Open Market Committee (FOMC) of the Federal Reserve (Fed, the US central bank) on September 18.
Analysts expect a certain recovery in the August balance, following a decline in the last reported data. According to the FedWatch tool from the CME Group, today’s bets indicate a 67% probability of a 0.25 percentage point interest rate cut.
Check the performance of futures markets:
Dow Jones Futures: -0.13%
S&P 500 Futures: -0.17%
Nasdaq Futures: -0.24%
Asia-PacificAsian markets closed without a clear direction after the Chinese industry fell to the lowest level in 6 months in August, with falling factory prices and proprietors facing difficulties in placing orders, as shown by the National Bureau of Statistics’ Purchasing Managers’ Index (PMI) on Saturday, pressuring policymakers to proceed with plans to direct more stimulus to households.
New home prices in China rose at a slower pace in August, a private survey on Sunday showed, while the crisis-hit real estate sector struggles to find its lowest point after a series of support policies.
Shanghai SE (China): -1.10%
Nikkei (Japan): +0.14%
Hang Seng Index (Hong Kong): -1.65%
Kospi (South Korea): +0.25%
ASX 200 (Australia): +0.22%
EuropeEuropean markets also start the week on a low note, with investors assessing market prospects and digesting economic activity data in the region.
In the corporate field, shares of real estate platform Rightmove soared up to 24% at market opening and rose 21.16% after its Australian rival REA Group said it was considering making an offer for the UK-based platform.
FTSE 100 (United Kingdom): -0.03%
DAX (Germany): -0.18%
CAC 40 (France): -0.26%
FTSE MIB (Italy): -0.22%
STOXX 600: -0.33%
CommoditiesOil prices are trading lower, with investors evaluating the higher production by the Organization of Petroleum Exporting Countries and its allies (OPEC+) in October compared to the sharp decline in Libya’s production, amid slow demand in China and the US.
Iron ore prices in China recorded their biggest daily drop in almost two years this Monday, pressured by a series of poor economic data from the country, the sector’s largest consumer. Meanwhile, the reference iron ore contract SZZFV4 for October on the Singapore Exchange fell 4.14%, to US$96.85 per ton.
WTI Crude Oil: +0.11%, at US$73.66 per barrel
Brent Crude Oil: +0.07%, at US$76.29 per barrel
Iron ore traded on the Dalian Exchange fell by 4.36%, to 723.50 yuan, equivalent to US$101.77
BitcoinBitcoin: -0.48% at US$58,165.00 (compared to 24 hours ago)
(With Reuters)
