The Ultimate Guide to Navigating the U.S. and Global Markets in September by Mike Dolan
Wall Street gears up for a busy week focused on the U.S. jobs market after last month's unemployment scare. With markets returning to stability, all eyes are on the upcoming Fed interest rate cut in September.
As markets anticipate a quarter-point cut, the key question remains the size of the reduction. However, expectations of a 50 basis point cut are also on the table. The Fed's focus on the labor market is evident, with future cuts expected by year-end.
The highlight of the week will be the August payrolls report, forecasting an increase in job growth and a decline in the unemployment rate. Before that, we'll see updates on manufacturing, with ISM and S&P Global surveys on the U.S. factory sector.
Global manufacturing woes, particularly in China and Europe, are impacting commodity and energy prices. The pressure on these sectors is fueling speculation on further rate cuts, with the Bank of Canada expected to ease its policy rate.
The U.S. dollar remains strong, while European stocks and Chinese shares face volatility. Chinese property developer, New World Development, saw a significant drop in shares, reflecting concerns over debt and liquidity in the property sector.
In Europe, Volkswagen considers closing factories in Germany, signaling increased competition from Asian rivals. Key events to watch include U.S. manufacturing surveys, European Central Bank speeches, and corporate earnings reports.
Overall, the economic landscape is uncertain, with market volatility and global factors influencing investment decisions. Stay informed, stay vigilant, and be prepared for potential market shifts in the coming days.
