- European indices open higher after mixed Asian session and yesterday rally on Wall Street
- US Non-Farm Payrolls (NFP) report in focus of global markets
- A reading of consumer sentiment and inflation expectations by the University of Michigan
After a mixed Asian session, but a great one on Wall Street yesterday, European stock markets opened higher on the final day of the week, in anticipation of the US NFP report (1:30 PM GMT). A likely lower-than-forecast reading would cement the market's belief that the Fed will 'soften' next year and cut rates faster and more than the current line of communication would indicate, weakening the dollar. Meanwhile, Wall Street is expecting a higher-than-previous reading for the change in employment in the U.S. non-farm sector. Macro data published earlier in the Asian session mostly concerned Japan, where the GDP revision yielded a 0.7% drop k/wk versus a 0.5% decline in the first reading. New Zealand's industrial production sales fell 2.7% y/y vs. 2.9% growth in the previous month.
Today we don't see any scheduled speeches by central bankers on the calendar, nor will we learn of any key macro publications from Europe. The final inflation data from Germany, published at 7:00 AM GMT., turned out to be in line with expectations. The markets' attention will shift entirely to the NFP report and the University of Michigan consumer sentiment reading (3:00 PM GMT). The market optimistically expects a decline in inflation expectations, with a slight improvement in consumer sentiment. The volatility of the currency market in the afternoon could be considerable, the bigger surprise in either direction the NFP will bring.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app1:30 PM GMT - US, Non-farm payrolls (NFP)
- Employment change: 183k exp. vs. 150k previously
- Unemployment rate: 3.9% exp. vs. 3.9% previously
- Wages y/y: 4% exp. vs 4.1% previously
- Wages m/m: 0.3% exp. vs 0.2% previously
- Average hours worked: 34.3 exp. vs 34.3 previously
- Labor market participation rate: 67.3% exp. vs 67.3% previously
3:00 PM GMT - US, consumer sentiment according to the University of Michigan
- Consumer index: 62 exp. vs 61.3 previously
- Expectations index: 57 exp. vs 56.8 previously
- Current Conditions Index: 68.5 exp. vs 68.3 previously
- Inflation expectations (1-year): 4.3% exp. vs. 4.5% previously
- Inflation expectations (5-year): 3.1% exp. vs. 3.2% previously
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
