China's foreign exchange reserves increased by $ 31.8 billion to reach $3.288 trillion in August 2024 from $3.256 trillion in July, compared with forecasts of $ 3.29 trillion. It was the second straight month of expansion, hitting the highest level since December 2015, as the dollar fell against other currencies. Last month, the yuan gained by 1.9% against the dollar, while the dollar weakened by 2.2% against a basket of other major currencies. Meanwhile, gold reserves remained unchanged for the fourth straight month at 72.8 million troy ounces, after a gain for 18 consecutive months, but its value climbed to $182.98 billion from $176.64 billion in July, boosted by higher gold prices to a record high.

In New York, the Dow Jones Index fell 410 points or 1.01 percent on Friday. Leading the losses are Amazon (-3.40%), American Express (-3.18%) and Boeing (-2.53%).

US stocks fell on Friday, weighed down by concerns over a slowing labor market and a tech selloff. The S&P 500 dropped 1.7%, the Dow lost 409 points, and the Nasdaq fell 2.5%. Big tech companies like Amazon (-3.6%), Alphabet (-4%) and Meta (-3.2%) saw significant losses, with chipmakers such as Broadcom (-10.3%) and Nvidia (-4.1%) also faced sharp declines. The August jobs report, which showed 142K new jobs versus the 161K expected, added to market jitters. In addition, Federal Reserve Governor Christopher Waller’s comments heightened expectations of a larger rate cut in September. He emphasized rising risks in the labor market and expressed openness to a more substantial rate cut if necessary. For the week, the S&P 500 lost about 4%, marking its worst week since March 2023. The Nasdaq sank 5.6% to book its worst start to September since 2001. The Dow slipped 2.5% and posted its steepest early-September decline since 2008.

The S&P/TSX Composite Index reversed early gains to close 0.9% lower at 22,781 on Friday, mirroring a global selloff in risk assets as US recession fears were reignited by weaker-than-expected jobs data. Domestically, Canada’s unemployment rate climbed to 6.6% in August 2024, the highest since October 2021 and above forecasts of 6.5%, reinforcing the Bank of Canada’s view of a weakening labor market and supporting the case for further rate cuts. Economic activity also contracted for the first time in 13 months, with the Ivey PMI dropping to 48.2, its lowest since December 2020, amid slowing employment growth and intensified price pressures. Leading the declines on the Toronto exchange, Shopify plunged 4.1%, while weaker commodity prices weighed on the energy sector and key miners, with Suncor (-1.4%), Agnico (-1.9%), Imperial Oil (-2.2%), Canadian Natural (-1.3%), Barrick Gold (-1.9%), and Cenovus (-1.5%) underperforming. The TSX lost 2.4% for the week.

The German DAX erased early gains and closed 1.5% lower at 18,302 on Friday, tracking the selloff in equity markets across the globe as concerns of a weakening US economy hurt investors’ risk sentiment. The US added fewer jobs than expected, driving FOMC members to advocate for an immediate and aggressive rate cut in the Federal Reserve’s policy decision this month to consolidate the market’s concerns of lower growth in the world’s top economy. Industrial giants traded in Frankfurt were among the top laggards, with Siemens and Airbus each sinking 2%. In the meantime, Infineon sank 3.5% on the session and 12.2% on the week to track the pullback in the chip sector in North America and Europe, extending this week’s volatility.

US equities were sharply lower on Friday afternoon, weighed down by concerns over a slowing labor market and a tech selloff. The S&P 500 dropped over 1.7%, the Dow lost more than 400 points, and the Nasdaq fell 2.6%. Big tech companies like Amazon (-3.4%), Alphabet (-3.6%) and Meta (-2.9%) faced significant losses, with chipmakers such as Broadcom (-9.9%) and Nvidia (-5%) also sharply declines. The August jobs report, which showed 142K new jobs versus the 161K expected, added to market jitters. In addition, Federal Reserve Governor Christopher Waller’s comments heightened expectations of a larger rate cut in September. He emphasized rising risks in the labor market and expressed openness to a more substantial rate cut if necessary, based on the latest data. For the week, the S&P 500 lost about 4%, heading for its worst week since March 2023. The Nasdaq sank 5.5%, on pace for its worst start to September since 2001. The Dow slipped 2.5%, its steepest early-September decline since 2008.

In the United States, all attention will be on inflation as both consumer and producer price indexes are set to be released. Investors will also be watching export and import prices, along with the Michigan consumer confidence survey. In the Euro Area, the key focus will be on the upcoming interest rate decision. China will have a busy week with foreign trade data, CPI, PPI, and new yuan loans. Inflation rates are also expected from Mexico, Brazil, Russia, and India. In the UK, the unemployment rate, July’s GDP growth, and industrial production figures will be released. Additionally, industrial production data will be reported for Turkey, Italy, India, and the Euro Area. In Australia, the Westpac Consumer Confidence Index will be closely monitored.

The FTSE MIB dropped 1.17% to close at 33,291 on Friday, marking a new two-week low and aligning with the decline seen across other European indices. This selloff was driven by renewed concerns about the US economy following a disappointing jobs report, which led to a broad retreat from risk assets. The US labor market fell short of expectations in August, with significant downward revisions for June and July, exacerbating fears of an economic slowdown amidst recent weak manufacturing data and rising recession worries in the world's largest economy. Among the corporate decliners were Prysmian (-3.9%), STMicroelectronics (-3.1%), Banca Monte Paschi Siena (-2.7%), and Telecom Italia (-2.7%). In contrast, utilities performed well, with Hera (+1.4%), A2A (+1.1%), and Enel (+0.8%) standing out as top performers. For the week, the FTSE MIB recorded a loss of over 3%.

European stocks closed sharply lower on Friday, tracking losses on Wall Street and pressured by a global decline in risk sentiment amid growing concerns of a less-resilient US economy. The Eurozone’s Stoxx 50 sank 1.7% to close at 4,733, a 4.5% plunge on the week, and the pan-European Stoxx 600 lost 1.2% to close at 506, a 3.5% drop since reaching its record high on Monday. Fewer jobs were added to the US economy than expected in August, while payrolls for the prior months were revised lower, warranting FOMC member Christorpher Waller to sound the alarm on the fragility of the US labor market. The European tech sector tracked its US counterparts and led the declines, with ASML sinking 5.4% on the session and 16% on the week due to worries that the AI-led equity rally may have been exaggerated. Banks and consumer discretionary stocks also felt the pressure from the risk-off sentiment, with Kering, Volkswagen, BNP Paribas, and Santander dropping between 3.5% and 2.3%.

In Milan, the FTSE MIB Index fell 441 points or 1.31 percent on Friday. Leading the losses are Prysmian (-3.73%), STMicroelectronics (-3.28%) and MFE-MediaForEurope (-3.23%).

In Frankfurt, the DAX Index dropped 290 points or 1.56 percent on Friday. Losses were led by Siemens Energy (-6.69%), Infineon (-3.41%) and Munich RE (-3.36%).

In Paris, the CAC 40 Index decreased 89 points or 1.20 percent on Friday. Losses were driven by Renault (-3.80%), STMicroelectronics (-3.26%) and Kering (-3.23%).

In London, the FTSE 100 Index fell 71 points or 0.87 percent on Friday. Leading the losses are Vistry Group (-6.71%), Burberry (-4.49%) and B&M European Value (-4.11%). Top gainers were United Utilities (1.28%), Smith & Nephew (1.25%) and London Stock Exchange (1.14%).

The FTSE 100 failed to recover and closed about 0.7% down at 8,181.5 on Friday, its lowest in nearly a month, extending losses for the sixth consecutive session. Global traders undertook a reassessment of the latest U.S. jobs report, which indicated a continued slowdown in the labor market, strengthening expectations of an impending interest rate cut by the Federal Reserve. Nevertheless, uncertainty persisted about the scale of the potential reduction. On the domestic front, figures from Halifax showed that house prices edged up to a two-year high in August as confidence picked up amid easing interest rates. Among individual stocks, Vistry Group bottomed the index with a 6.3% decline after UBS analysts stuck to a ‘sell’ rating on the housebuilder despite positive results on Thursday. Burberry lost over 5% ahead of its imminent FTSE 100 relegation. Industrial miners were also down on the back of lower copper and iron prices. For the week, the FTSE 100 posted a 2.3% decline.

US100 decreased to a 4-week low of 18413.00 Index Points. Over the past 4 weeks, US 100 Tech Index gained 3.15%, and in the last 12 months, it increased 20.79%.

The CAC 40 dropped 1.1% to close at 7,350 on Friday as renewed concerns over the health of the US economy, sparked by a disappointing jobs report, triggered a broad selloff in risk assets. The US labor market created fewer jobs than expected in August, with sharp downward revisions for June and July, compounding fears of a slowdown amid weakening manufacturing data in recent weeks and heightening recession concerns in the world’s largest economy. In France, industrial production fell by 0.5% in July 2024, exceeding the expected 0.2% decline and reversing the 0.8% growth recorded in June. Leading losses among individual stocks, Hermes, Schneider Electric, Airbus, BNP Paribas, and Saint-Gobain each fell between 2% and 2.9%. For the week, the CAC 40 tumbled 3.9%.

The yield on the 10-year Treasury note fell under 3.7% on Friday, the lowest in over 15 months, as evidence of a softening labor market strengthened bets of multiple aggressive rate cuts by the Fed this year. The US economy added 142 thousand jobs in August, below expectations of 160 thousand, while payrolls for the previous month were revised downward by 25 thousand. This drove FOMC member Christopher Waller to warn that the Fed must immediately respond with rate cuts, adding that the urgency for less restrictive rates may warrant a 50bps slash to kick off the bank’s cutting cycle. This added to earlier data that aligned with worries of fragility in the US labor market, triggering a clear dovish pivot by Fed Chair Jerome Powell during his Jackson Hole speech. Consequently, investors piled on bets of 125bps in Fed cuts this year, compared to 100bps from the end of August. In the meantime, the yield on the 2-year note fell below that of the 10-year for the first time since 2021.

GB100 decreased to a 4-week low of 8167.00 Index Points. Over the past 4 weeks, United Kingdom Stock Market Index (GB100) gained 0.05%, and in the last 12 months, it increased 9.8%.

US 10 Year Government Bond Yield decreased to a 14-month low of 3.66%. Over the past 4 weeks, US 10 Year Note Bond Yield lost 27.40 basis points, and in the last 12 months, it decreased 58.20 basis points.

The yield on Canada's 10-year government bond fell below 3% in September, reaching a fifteen-month low, in line with US Treasury yields, as markets anticipate lower interest rates by the BoC and the Fed. Canada’s unemployment rate climbed to 6.6%, the highest since October 2021, reflecting the Bank of Canada's concerns about a cooling labor market highlighted in its recent 25bps rate cut. Additionally, economic activity contracted for the first time in 13 months, with the Ivey PMI dropping to 48.2, its lowest since December 2020, as employment growth slowed and price pressures intensified, further supporting the case for continued easing. In the US, weaker-than-expected labor data raised concerns about the health of the world's largest economy and bolstered expectations of a more aggressive rate cut by the Fed.

The yield on France's 10-year government bond dropped below 2.9%, reaching fresh five-month lows as the latest US jobs report strengthened expectations of a 50 basis point rate cut by the Federal Reserve this month. Job growth in the US came in below expectations, with notable downward revisions for June and July. This prompted FOMC member Christopher Waller to stress the need for immediate rate cuts, suggesting that the urgency to ease monetary policy could justify a 50bps reduction to initiate the Fed's rate-cutting cycle. In Europe, speculation is mounting that the ECB will implement a second rate cut at its September 12th meeting, bolstered by preliminary data showing Eurozone inflation declined to 2.2% in August, the lowest level since July 2021, while core inflation eased to 2.8% after holding steady at 2.9% for three months.

The yield on Italy's 10-year BTP hovered around 3.55%, staying near two-week lows, as the latest US jobs report boosted expectations for a 50 basis point rate cut by the Federal Reserve this month. Job growth in the US fell short of forecasts, with significant downward revisions for both June and July. This drove FOMC member Christopher Waller to warn that the Fed must immediately respond with rate cuts, adding that the urgency for less restrictive rates may warrant a 50bps slash to kick off the bank’s cutting cycle. In Europe, speculation is rising that the ECB will announce a second rate cut at its September 12th meeting, further supported by preliminary data showing Eurozone inflation fell to 2.2% in August, the lowest since July 2021, while core inflation edged down to 2.8% after remaining steady at 2.9% for three months.

Stocks in the US failed to hold early gains on Friday, with the S&P 500 sinking about 1%, the Dow Jones losing about 250 points and the Nasdaq plunging 1.7%. Traders digest the latest jobs report and continue to adjust their bets for the Fed's move. The US economy added less jobs than expected and figures for both June and July were revised sharply lower. Still, the unemployment rate edged lower to 4.2% as expected and wage growth picked up to 0.4% from 0.2%, higher than forecasts of 0.3%. Traders are now pricing in a nearly 40% chance the Fed will cut interest rates by 50bps later in the month, compared to about 50% right after the payrolls release and 30% early in the week. Meanwhile, concerns about the health of the US economy continue to weigh on the tech sector. Microsoft (-1%), Nvidia (-3.9%), Amazon (-2.2%), Meta (-1.2%), Alphabet (-2.3%), Tesla (-4.8%) all booked big losses. So far on the week, the S&P 500 is down 2.6%, the Dow Jones fell 1.9% and the Nasdaq lost 3.3%.

The Ivey Purchasing Managers Index in Canada dropped sharply to 48.2 in August 2024 from 57.6 in July, significantly missing the forecast of 55.5 and hitting its lowest level since December 2020. This decline marks the first contraction following 12 months of solid economic growth, driven by steep falls in the inventories index (53.6 vs. 54.8 in July), the employment index (54.7 vs. 56.1), and the supplier deliveries index (44.8 vs. 46.4), which reached a low not seen since September 2022. Meanwhile, price growth accelerated (62.3 vs. 59.2), and the unadjusted PMI fell to a December 2022 low of 50.3 from 55.3 in the previous month.

The New Zealand dollar eased to the $0.62 mark as investors assessed the magnitude of rate cuts expected by the RBNZ and the Fed this year. A series of soft domestic economic data strengthened bets that the RBNZ will deliver another rate cut in its October meeting. These were lastly underscored by a sharper-than-expected contraction in retail sales and a faster decline in credit card spending. Such a measure would follow the unexpected start of its loosening cycle in August, where the central bank delivered a 25bps rate cut. The local currency was also pressured by bearish signs for the Chinese economy, limiting the import outlook for New Zealand's largest trading partner and hampering expectations of foreign exchange inflows. Still, pessimistic labor market data in the US triggered dovish bets for the Fed, limiting the pullback for the Kiwi dollar. Markets now expect the US central bank to cut its rate by a cumulative 125bps in its three remaining meetings this year.

The yield on the UK 10-year gilt was around 3.94% as the latest jobs report for the US raised bets the Fed will cut interest rates by 50bps this month. The US economy added less jobs than expected and figures for both June and July were revised sharply lower. In the UK, the Bank of England is likely to maintain rates at its September 19th meeting, but could cut by 25bps in November. Next week, several key indicators will provide an update on the UK economy, including unemployment rate, wage growth, monthly GDP and industrial production.

The German 10-year government bond yield was around 2.2%, holding close to a two-week low, as the latest jobs report for the US raised bets the Fed will cut interest rates by 50bps this month. The US economy added less jobs than expected and figures for both June and July were revised sharply lower. Meanwhile in Europe, the ECB is expected to reduce borrowing costs by 25bps next week, as inflation in the Euro Area fell to 2.2% in August, wage growth eased and the GDP growth was revised lower to 0.2% in Q2. In Germany, data continues to point to a challenging economy, with rising imports, a significant decline in industrial production, and the manufacturing PMI indicating a worsening recession in the manufacturing sector.

The euro weakened below $1.108 mark after touching a one-week high of $1.111 on September 5th as investors assessed the latest economic data for hints on the magnitude of rate cuts by the ECB and the Fed. GDP growth in the Eurozone was revised lower to 0.2% during the second quarter, aligning with concerns that restrictive monetary policy is impacting the bloc’s economy to a larger extent, especially in its largest member, Germany. Consequently, markets piled on bets that the central bank will extend its cutting momentum with another 25bps rate cut next week. Still, the currency pair remained 3.4% higher since the start of the third quarter as evidence of a softening US labor market strengthened bets of a dovish Fed. This was underscored by back-to-back soft non-farm payroll numbers released by the BLS in August, driving markets to position for a series of rate cuts by the US central bank.

The S&P/TSX Composite Index rose 0.3% to above the 23,060 mark on Friday, bolstered by gains in the financial and energy sectors, while investors assessed the latest labor market data in Canada and the US. Canada’s unemployment rate climbed to 6.6% in August 2024, up from 6.4% in July, reaching its highest since October 2021 and exceeding the expected 6.5%. This increase aligns with the Bank of Canada’s forecast for a weakening labor market, supporting the case for further rate cuts. Leading the Toronto exchange, major financial institutions like RBC, TD Bank, Brookfield, Scotiabank, and CIBC posted gains between 0.5% and 0.7%. The energy sector also saw a boost from rising oil prices, with Enbridge, Suncor, Canadian Natural, and Cenovus each advancing over 0.5%. Meanwhile, a weaker-than-expected US jobs report fueled expectations of a more aggressive rate cut by the Federal Reserve. Still, the TSX was poised for a 1.1% weekly decline.

The S&P 500 and the Nasdaq gained 0.3% and 0.1% respectively while the Dow Jones added over 220 points as the latest jobs report fueled speculation that the Fed could be poised for a significant rate cut this month. The US economy added less jobs than expected and figures for both June and July were revised sharply lower. Still, the unemployment rate edged lower to 4.2% as expected and wage growth picked up to 0.4% from 0.2%, higher than forecasts of 0.3%. Traders are now pricing in a nearly 50% chance the Fed will cut interest rates by 50bps later in the month, compared to about 30% early in the week. Megacaps were mixed, with Microsoft (0.2%), Apple (0.9%) and Meta (0.5%) rising, while Nvidia traded around the flatline and Amazon (-0.4%) was in the red. Also, Broadcom fell over 8% its sales outlook disappointed. So far on the week, the S&P 500 is down 2.6%, the Dow Jones fell 1.9% and the Nasdaq lost 3.3%, amid a challenging start to a historically tough month for Wall Street.