PREVIOUS TRADING DAY EVENTS 01 September 2023

U.S. nonfarm payrolls surprised by the upside 187k vs. 170k. However, the previous three months data revised sharply lower, close to 100K suggesting that the 525 basis point interest rate hike is finally softening the U.S. labour market. The U.S. unemployment rate rose to an 18month high of 3.8 compared to expectations of 3.5. The Yield on 10year Treasuries rose 10 basis points to 4.19 per cent and the US Dollar gained too with the US Dollar Index closing the week at 104.34 up from the earlier lows of 103.30.

The data suggests Labour markets are normalising and actually raise the expectations that the Feds next move would be a cut in interest rates in the first half of 2024 according to Andrew Hunter, Deputy Chief U.S. Economist at Capital Markets. The CME Fedwatch now has a 93 chance of a no change decision by the FOMC  at the September meeting and 64 of no changes at all by yearend.

Stock markets closed flat on Friday. The benchmark SP 500 gained 8 points to 4515, having been higher in early trades. Gold rallied over 1950 but could not hold this key level and closed at 1940. As the Dollar gained, USOil continued its strong week, breaching and breaking the important 85.00 level.  

Sources httpswww.reuters.commarketseuropeglobalmarketsvieweurope2023090

httpswww.ft.comcontente8cceac788484624be7527d02fa5d8a4

httpswww.cmegroup.commarketsinterestratescmefedwatchtool.html

Today 04 September Asian and European markets…