The joy at the prospect of the Chinese government's economic stimulus package for its own economy is likely to remain a talking point in the new trading week. In addition to a planned speech by Fed Chairman Jerome Powell, attention should be focused on the official US labor market report on Friday.
Planned economic stimulus packages in China are likely to remain a topic of discussion
The People's Bank of China (PBoC) announced a whole series of measures in the last trading week to protect the Chinese economy from a downturn and support the battered real estate sector. For example, various interest rates are to be lowered in order to stimulate the economy. Overall, the prospect of supportive measures had already caused investors to jump for joy. It is quite possible that the PBoC will announce further measures in the coming days and weeks.
Focus on China data and Jerome Powell at the start of the week
From the perspective of the economic data calendar, investors should keep an eye on new China data at the start of the week. In addition to the NPS PMI index for manufacturing, the focus will be on the non-manufacturing sector and the services sector (03:00).
A speech by Fed member Michelle Bowmann is already on the agenda at 14:50. Fed Chairman Jerome Powell is scheduled to speak at 19:00.
On Tuesday, the ISM data for the manufacturing sector is likely to attract interest (16:00).
With Rapahel Bostic from the Atlanta Fed branch (17:00), Governor Lisa Cook (17:10), there could be further monetary policy stimulus.
Further speeches with Barkin (Richmond), Bostic, Cook and Collins (Boston) are also planned for the night from Tuesday to Wednesday (00:15).
ADP data should be the first appetizer for NFPs
Usually, the ADP data from the service provider Automatic Data Processing should give a first taste of the official US jobs report (14:15). Economists expect a job gain of 110,000 units, after 99,000 jobs in the previous month.
The counterpart to the ISM index for the non-manufacturing sector will be published on Thursday at 16:00.
Kashkari (Minneapolis) and Bostic will round off Thursday with speeches (16:40).
Economists expect a slight increase in the US job market - unemployment rate likely to remain at 4.2 percent
The weekly highlight is likely to be the so-called Non-Farm Payrolls (NFPs). According to experts, a total of 145,000 new non-farm jobs may have been created in the world's largest economy in September, slightly more than in August (142,000 units). Consequently, the unemployment rate is likely to remain at 4.2%, the same level as in the previous month.
FOMC member John Williams joins the existing central bankers' speech marathon on Friday at (15:00).
