Markets seem calm for the moment after the rising optimism seen during the overnight’s trading. All eyes are on US labor market data, as well as a statement from Jerome Powell just before the weekend.
The US economy is expected to create slightly fewer jobs in August than the previous month.
The Ministry of Labor will publish its latest job data at 3:30 PM. Economists expect Nonfarm Payrolls to rise by 160,000 last month, according to estimates. This will be below the 164,000 increase in July. The unemployment rate is projected to remain stable at 3.7%.
The good news is that much of the wage hike we are seeing right now is happening among the lowest paid workers, which is reflected almost immediately in consumer spending.
Today, I expect cautious trading because of the sensitive news this afternoon and the fact that it is the last day of the week. After a few strong days, stock market indexes may be corrected, and worse values from the labor data may ruin investors’ optimism.
Trader Aleksandar Kumanov