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Markets await US services data and Fed minutes

This week, US services activity and Federal Reserve (Fed) meeting minutes take centre stage. Monday brings September services Purchasing Managers’ Indices from the US and euro area, including the US ISM index, alongside Italy’s gross domestic product for the third quarter and October’s Sentix investor confidence index for the euro area. The Fed publishes its meeting minutes on Wednesday, followed by the European Central Bank’s policy-meeting account on Thursday. Friday brings October US consumer sentiment and Canada’s September employment report. Mainland Chinese markets are closed from Monday to Wednesday for National Day.

  • Data
  • Autore Amira Scherz, Junior Investment Writer
  • Tempo di lettura 5 minuto

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US shares advanced on Friday, led by record-setting technology indices, after weak employment figures dampened expectations of further Fed tightening. In Asia, the rally continued in Japan on Monday despite signs of slower services growth. In Europe, a pickup in euro-area inflation on Friday pointed to persistent price pressures. In other markets, gold fell 0.2% to around USD 4130 per ounce after falling 3.4% last week, while silver gained 1.1% to USD 61.03 per ounce after being on course for a nearly 6% loss last week. Bitcoin rose 0.9% to around USD 85,600.

Japan stocks rise as services growth slows

Asian equity markets were mixed on Monday, although weaker US employment data eased expectations of another Fed rate increase. Japan’s Nikkei 225 climbed 2.1% to around 69,733.00 points, led by technology shares. Hong Kong’s Hang Seng fell 0.3%, and markets in China and South Korea were closed for holidays. Meanwhile, Japan’s services PMI fell to 51.3 in September from 52.5 in August, data released on Monday showed, as earthquake disruption weighed on orders despite faster hiring. The composite PMI declined to 52.3 from 53.5, its lowest since May.

Weak US jobs data lift tech stocks

US employers added 29,000 jobs in September, down from a revised 133,000 in August and below forecasts, data released on Friday showed. The unemployment rate rose to 4.2% from 4.1% as the labour force expanded, while July’s payroll figure was revised to a loss of 10,000 jobs. Separately, durable goods orders fell 0.1% in August after rising 0.9% in July. The weaker jobs report reduced expectations of another Fed rate increase in October and helped US technology stocks reach record highs. The Nasdaq-100 gained 1% to 30,807.93 points, the S&P 500 rose 0.7% to 7722.72 points and the Dow Jones added 0.5% to 51,176.96 points, although higher bond yields and oil prices limited gains. The US dollar initially weakened but recovered to CHF 0.8287 from CHF 0.8273 earlier in the day, supported by safe-haven demand.

Euro-area inflation hits three-year high

Euro-area inflation rose to 3.8% in September from 3.2% in August, exceeding forecasts, data released on Friday showed. Energy prices climbed 18.8% year-on-year, while core inflation edged up to 2.5% from 2.4%. Consumer prices rose 0.6% month-on-month, following a 0.4% increase in August.

Italian retail sales rebound in August

Italian retail sales rose 0.3% month-on-month in August, reversing a 0.4% fall in July and beating expectations for a decline, data released on Friday showed. Food sales increased 0.8%, while non-food sales were unchanged after two months of falls. Annual retail sales growth slowed to 0.5% from 1% in July.

French sovereign risk premium rises

The cost of insuring French government debt for five years rose to 81 basis points on Friday, from around 72 on Thursday. Investors are concerned about public debt of roughly 119% of GDP. The government’s proposed EUR 43 billion in new fiscal measures for 2027 face uncertain parliamentary support.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: Italian Purchasing Managers’ Index (09:45), French Purchasing Managers’ Index (09:50), German Purchasing Managers’ Index (09:55), euro-area Purchasing Managers’ Index (10:00), UK Purchasing Managers’ Index (10:30), Sentix investor confidence for the eurozone (10:30), Italian gross domestic product (11:00), Canadian Purchasing Managers’ Index (15:30), US Purchasing Managers’ Index (15:45) and US Institute for Supply Management Purchasing Managers’ Index (16:00).

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Editor: Alessandro Fezzi
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