In a generally eventful trading week, the release of US labor market data today (Friday) marks the highlight of the week. In view of the uncertainty surrounding the state of the job market in the United States, the principle of caution has generally prevailed in recent days. Investors have also been confronted with poor US economic data in particular.
DAX Chart
Source: Tradingview
US purchasing managers put investors off - ADP data signal weak US labor market data
While Monday consequently provided less impetus in view of the US Labor Day holiday, on Tuesday it was the purchasing managers for US industry that turned out worse than expected, causing investors' concerns about an economic slowdown in the US to widen again. At 47.20 points, the index remains below the growth threshold of 50 points.
At midweek, S&P Global purchasing managers in Germany (overall index) also signaled a downward trend. Even though the counterpart for the eurozone did not quite meet expectations, the index in the Old World, at 51 points, is still above the important expansion threshold of 50 points.
A first taste of the official US labor market report (Non-Farm Payrolls) released the ADP employment data on Thursday, which came in oddly weak at just 99,000 units, heightening concerns of another disappointment on the US labor market. Experts had expected a total of 145,000 new jobs after 122,000 units in July.
ISM non-manufacturing index better than expected - US labor market data likely to decide the weal and woe
The fact that the ISM Purchasing Manager for the non-manufacturing sector was somewhat better than expected can be seen as a glimmer of hope.
The growth rate of the Gross domestic product According to the latest estimates, growth in the eurozone was slightly weaker than expected in the previous quarter at 0.2% (0.3%).
This afternoon, investors are now likely to focus on the NFPs (14:30). According to the latest figures, economists expect non-farm payrolls to increase by 160,000 units in August, up from 114,000 in the previous month. In this context, the unemployment rate could fall from 4.3 percent to 4.2 percent.
Today's US jobs report is highly explosive, as a month ago an extremely disappointing report, among other things, fueled concerns about recession and sent stock markets around the globe into a tailspin.
