• US markets were closed on September 2 for Labor Day, with focus now shifting to upcoming labor market data releases this week.
• Investors are eyeing Friday’s August jobs report, the key release this week, to see if July’s slowdown was overstated or a sign of a broader decline. Economists surveyed by Bloomberg expect the US economy to add 163,000 jobs in August, with the unemployment rate edging down to 4.2%.
• US consumer sentiment, as measured by the University of Michigan, was revised slightly higher to 67.9 in August 2024 from 67.8, below the expected 68. Inflation expectations for the next year were adjusted lower to 2.8% from 2.9%, with the five-year forecast holding steady at 3%.
• This week, markets focus on major data releases: 1) ISM Manufacturing and Services; 2) ADP employment change; 3) JOLTs Job Opening; and 4) US Non Farm Payrolls.
• In Europe, the HCOB Eurozone Manufacturing PMI remained steady at 45.8 in August 2024, unchanged for the third consecutive month, marking over two years of continuous monthly contractions in the manufacturing sector.
• In Asia, the Caixin China General Manufacturing PMI rose to 50.4 in August 2024 from 49.8 in July, beating market expectations of 50.0. This increase was driven by a rebound in new orders, which led to a stronger production expansion amid improved demand conditions.
• Global bond yields moved higher on Monday: the 10-yr German bund yield up +3.0 bps to 2.33%, the 10-yr UK gilt yield surged by +3.9 bps to 4.05%, and the 10-yr Japanese JGB rose by +1.5 bps to 0.91%.
