Global Markets Focused on US Employment Data

Global markets focused on US employment data. Announced data might be a new driving force for markets.

After Fed Chairman Jerome Powell signaled at the Jackson Hole conference that the labor market should strengthen further to reduce asset purchases, eyes turned to nonfarm employment data to be released this week. U.S. stock markets reached new highs on Friday, the dollar index fell sharply, and bond yields fell, as Powell said it might be appropriate to start reducing asset purchases this year. In his speech, Powell also announced that they are not considering a rate hike yet. Michael Arone, Senior Strategist at State Street Global Advisors, stated that the markets were breathing easily after Powell said that the FED would not be able to raise interest rates soon, and hard sales were avoided as there was no situation similar to the "taper tantrum" in 2013. The non-farm employment data for August, which will be announced in the USA next week, will be important in terms of showing the course of the employment market. Grant Thornton Economist Diane Swonk said: "The employment data doesn't need to increase too much to meet the authorities' expectations. An increase of over 500,000 would also be welcome. That figure can also be reached. Authorities will also want to see good September jobs."