Five Things You Need to Know to Start Your Day: Europe
Get up to speed with what the markets are monitoring
Good morning. Investors await US payrolls data to gauge the Federal Reserve’s next move, heightened tensions in the Middle East keep traders on edge, and skeptics about the recent China rally emerge. Here’s what people are talking about.
The latest US payrolls report is set to give investors clues on the pace of the Fed’s monetary policy easing cycle. Economists anticipate hiring picked up slightly in September while the unemployment rate held steady at 4.2%, an outcome that would assuage any lingering concerns that labor demand is deteriorating. Softer hiring and a rise in the jobless rate earlier this year were major drivers behind the Fed’s decision to start its easing campaign with a large half-a-point cut in rates last month. Chair Jerome Powell this week reiterated that he wouldn’t want to see further weakening in the labor market. Chicago Fed President Austan Goolsbee reiterated interest rates need to come down over the next year by “a lot.”