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Top 5 things to watch in the market in the coming week

by Noreen Burke — The Fed is firmly committed to raising interest rates to curb inflation, even as Falling growth costs, and investors will be looking to Friday’s August jobs report for signs of a strengthening labor market. U.S. stock market investors will continue to reposition after a sharp sell-off on Friday that erased all modest gains in August. The euro zone is due to release closely-watched inflation data as European Central Bank officials make the case for sharp interest rate hikes next month. Meanwhile, China’s PMI data is expected to point to continued weakness in the world’s second-largest economy. Here’s what you need to know to start your new week.

    Non-farm payrolls

Final Fed jobs report by September – The meeting was highly anticipated by market watchers trying to Figure out if the central bank can slow the economy without triggering a recession as it struggles to control inflation .

Risk of recession increases as Fed aggressive rate hikes weigh on consumer demand and housing the market. The Fed has raised its policy rate by 225 basis points since March.

While economies are cooling in some regions, the labor market remains strong so far. New economic growth in July 20, jobs, the biggest gain since February.

Economists expect the economy to increase 20, work in August. Unemployment is expected to stabilize at a five-year low of 3.5% while

average hourly earnings Expected to grow steadily.

  1. Other data

Ahead of Friday’s jobs data, the US will release a report on JOLTs Job Openings report, economists expect job openings to remain unchanged, indicating that demand in the labor market remains strong.

The newly revised ADP Nonfarm Payrolls report, covering private sector hiring, will be released on Wednesday , which will include new data on employment and wage growth. This is followed by weekly data on initial jobless claims on Thursday .

The economic calendar also includes the Institute for Supply Management August Manufacturing Index and update from the Conference Board Consumer Confidence .

  1. Stock market volatility

Wall Street closed Friday, All three benchmarks fell more than 3% as investors absorbed Federal Reserve Chairman Jerome Powell’s Jackson Hole speech.

S&P 500 in the first half The slump entered a bear market as investors price in aggressive rate hikes by the Federal Reserve, but the index has rebounded since June, recouping half of this year’s losses.

A combination of strong corporate earnings and optimism fueled a rebound Inflation may have peaked, which would allow the Federal Reserve to raise rates slowly.

But with hopes of a dovish Fed turn now frozen, the market could experience a bumpy ride heading into September.

  1. Eurozone CPI

Euro zone will release August CPI data on Wednesday, annual inflation expected to accelerate to 9.0% from 8.9% in July, well above the ECB’s 2% target.

The data could increase pressure on the European Central Bank to raise interest rates at its upcoming September meeting even as the risk of a recession grows.

ECB rate hike 0.5% in July, similar or greater expected next month growth, partly because of soaring inflation and partly because the Federal Reserve is also raising interest rates sharply.

ECB board member Isabel Schnabel, French central bank governor François Villeroy de Gachau and Latvian central bank governor Martti speak at Jackson Hole on Saturday Shih Kazaks all advocates strong or significant policy action to address disturbingly high inflation.

  1. China PMI
  2. China will release its August official report on Wednesday after an unexpected contraction in business activity in July PMI data sparked by lockdowns under China’s draconian zero-COVID policy.

    Caixin Private Sector PMI will

    This is not what the Chinese economy is facing The only challenges for China – China’s ongoing housing crisis has hit consumer and business confidence, while a record heatwave is expected to hit the agricultural sector.

    China’s central bank has cut lending rates in recent weeks to help support economic growth and the government announced last week measures to strengthen the labor market.

    –Reuters c Contributed to this report





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