US Session (09/08/2021)

As weak jobs data upended predictions on the Federal Reserve's policy plans, US stocks plummeted and Treasury yields rose.

The S&P 500 and Nasdaq 100 dropped in turbulent trading as data showed employers added far fewer jobs than expected last month. While the data is unlikely to prevent the Fed from announcing a reduction in asset purchases next month, it may relieve pressure on the central bank to hike interest rates sooner rather than later.

The yield on a 10-year Treasury note increased to 1.6%. Gold reversed a 1.5% gain. In New York, crude oil temporarily surpassed $80 per barrel for the first time since 2014.

The S&P 500 finished the week higher as stocks struggled for a direction. High volatility characterized the session, with traders rushing in to buy at market lows.

The monthly employment data was the second miss in a row, indicating labor market weakness just as the Fed prepares to reduce stimulus. The government sector lost the most jobs in the study, but leisure and hospitality hiring nearly quadrupled, indicating that the business climate is improving, albeit slowly.

With an upward revision for August payrolls, the weakest increase of the year occurred in September. In the meanwhile, the unemployment rate has dropped to 4.8%, and average hourly wages have increased.

Factors affecting crude oil prices - AZ Big Media

Asia Session (09/10/2021)

Asian markets assisted by a rebound in Japan, as traders weighed the global recovery's resistance against an oil shortage and the possibility of stricter monetary policy to combat inflation.

Japanese stocks rose as the yen fell and Japan's PM Kishida said that he is not exploring any adjustments to the country's capital gains tax at this time.

Hong Kong and China's stock markets rose.

Futures in the US declined.

Stocks in the US dipped on Friday as job growth statistics dropped short of expectations but indicated an increase in profits.

Price pressures, such as rising wages and rising energy prices, are bolstering the argument for tighter monetary policy

The Federal Reserve is likely to begin cutting asset purchases in the coming weeks, while policymakers at the Bank of England moved to reaffirm signs of an impending interest rate hike to combat inflation.

Treasury futures dipped on Friday when the 10-year US Treasury yield surpassed 1.6%.

The price of West Texas Intermediate crude was near its highest level since 2014.

The dollar index remained stable.


Europe Session (09/08/2021)

As investors anticipate crucial jobs data for hints on the Federal Reserve's monetary policy, US futures meandered and equities were divided. Treasury yields rose.

Contracts on US gauges did not alter much. Losses in tech and utilities companies outpaced the gains in car manufacturers, sending European equities down. Gains in China, where markets reopened after a lengthy vacation, boosted Asian stocks as a whole.

After the US Senate acted to avoid an imminent default, resolving weeks of political gridlock, global markets are on track for their best week since early September. Investors will initially look to today's employment data for clues on the Fed's timetable for decreasing asset purchases, despite the fact that an energy shortage and commodity-fueled price pressures remain a source of worry.

The yield on the 10-year US Treasury note hit its highest level since June. Oil continued to rise, heading for a sixth weekly gain.


Monday FX Option Expiries

EUR/USD: 1.1600 (EU1.12B), 1.1900 (EU882.9M), 1.1945 (EU833.8M)
USD/CNY: 6.4300 ($760M), 6.5500 ($666M), 6.4200 ($592M)
USD/JPY: 111.00 ($421M), 112.00 ($370M)
USD/JPY: 111.00 ($421M), 112.00 ($370M)