European stock indexes are all pushing higher in early trading on Monday and the dollar is trading lower against the euro and a basket of currencies on a day when the U.S. stock market is closed in observance of Labor Day.
Last Friday the U.S. jobs report for August disappointed the market with a mixed bag that left investors feeling uncertain about whether the employment data would be read positively or negatively by Fed officials at the upcoming Federal Reserve’s policy meeting from September 16-17th that will decide whether the U.S. central bank is ready to raise interest rates with the federal funds which has been near zero since December 2008.
All major U.S. stock indexes dropped over 1 percent on Friday.
The August employment report from the Bureau of Labor Statistics showed that total nonfarm payroll employment increased by 173,000 in August, below the 225,000 forecast from briefing.com.
However, the unemployment rate dropped to a 7 year low at 5.1 percent.
Job revisions were higher by 44,000 with July’s employment number rising from 215,000 to 245,000 and June’s rising from 231,000 to 245,000.
Over the prior 12 months, employment growth has averaged 247,000 per month. Over the past 3 months, job gains have averaged 221,000 per month.
Last Thursday ECB President Mario Draghi suggested that the ECB could expand its bond-buying program beyond September 2016 after admitting that their new forecasts were made on August 12th before China’s black Monday which sparked a sell-off with global markets.
The ECB also lowered their inflation target in the euro area to 0.1 percent in 2015 compared to a previous inflation forecast of 0.3 in June.
Today it was reported that China’s National Bureau of Statistics revised down their 2014 GDP to 7.3 percent from 7.4 percent.
The week ahead looks to be light with U.S. economic data.
On Tuesday: Consumer Credit (July)
On Wednesday: MBA Mortgage Index and Jolts Jobs Openings
On Thursday: Initial and continuing jobless claims, Export/import prices for August, Wholesale Inventories and Natural Gas Inventories
On Friday: PPI and Core PPI (August), Michigan Sentiment (Sept) and Treasury Budget (August)