September 3, 2024
United States:
US Jobs Data Return to Center Stage as Fed Mulls Rate-Cut Size
With the Federal Reserve set to begin cutting interest rates in a few weeks, the main question now is how big the first reduction will be. Monthly US employment data due Friday will probably determine the answer.
Investors are on the edge of their seats after the release of the July jobs report last month showed a rise in the unemployment rate to a level that triggered a popular recession indicator, fanning fears in financial markets that the economy may be on the brink of a downturn.
Europe:
German Stock Market Record Defies the Country’s Economic Gloom
Germany’s economy shrank last quarter, one of its biggest trading partners is ailing and the government is deeply unpopular. And yet the country’s benchmark stock index just made a record high.
That disconnect has investors wondering whether the DAX Index can add to this year’s 13% gains, given that measures of investor and business confidence point to further sluggishness ahead for the economy.
Asia:
Japan’s Dysfunctional Bond Market Shows More Signs of Recovery
More signs of sustained improvement are appearing in Japan’s bond market, even though it remains dysfunctional after over a decade of radical monetary easing reduced the incentive for investors to trade actively, according to a Bank of Japan survey.
The poll of market participants showed that 26% of respondents said functioning of the nation’s debt market was low, compared with 3% who said it was high. As a result, the diffusion index was at minus 23, the best showing in more than two years and compared with minus 24 in the previous survey taken in May.
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