<p>European stocks had one of their best days in awhile today, closing with gains of:</p><ul><li>Stoxx 600 +2.0%</li><li>German DAX +3.3%</li><li>FTSE 100 +2.3%</li><li>French CAC +2.3%</li><li>Italy MIB +2.9%</li><li>Spain IBEX +1.6%</li></ul><p>You can pretty much kiss all those goodbye. The VGK ETF tracks the Stoxx 600 and it’s now down 0.5% on the day with a huge reversal coming after the Nord Stream 1 news.</p><p>Less liquid ETFs are generally sending the same message.</p><p>US markets will be closed on Monday for a holiday but Europe is open.</p>

This article was written by Adam Button at www.forexlive.com.

<p>The US jobs report is coming up at the bottom of the hour. A few things to keep in mind as the data crosses:</p><ol><li>The consensus is +300K on jobs and +0.4% on average hourly earnings</li><li>There’s a strong <a target=“_blank“ href=“https://www.forexlive.com/news/preview-august-non-farm-payrolls-by-the-numbers-and-why-its-likely-to-disappoint-20220901/“ target=“_blank“>historical pattern</a> of weak August NFP readings</li><li>Goldman Sachs: „Sweet spot for stocks tomorrow is a 0 – 100k headline reading…should
get a 100+bp rally for S&P in this scenario after this recent
drawdown. If we happen to get a negative number an even sharper rally.“</li><li>ING: „The market may not really need a big surprise to fully price in a 75bp hike in September, and a respectable jobs report may be enough to trigger another leg higher in the dollar today.“</li><li>The dollar is near major resistance on a handful of fronts. This could be the tiebreaker. Next week’s US <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“ target=“_blank“>economic calendar</a> is light and the CPI report is Sept 13 </li><li>Durable goods orders data for July is due out at 10 am ET. It’s probably not a big market mover but it will be notable</li><li>There are no scheduled Fed speakers today</li><li>Monday is a holiday in the US, which could dampen liquidity in the latter half of the day</li></ol>

This article was written by Adam Button at www.forexlive.com.

<p>Another lockdown in China hurt copper prices this week and the worries continue to mount.</p><p>JPMorgan now sees 2022 growth at 3.0% from 3.2%. For 2023 they see 4.6% compared to 5.1% previously.</p><p>I’d still put risks to the downside on those numbers. Property-fuelled construction growth was the keystone of Chinese growth for a long time. There will be more infrastructure spending but the tide is going out on apartments/condos. Where that ends is tough to predict but the pendulum hasn’t stopped swinging yet. </p><p>This week Country Garden Holdings, which for years ranked as the top developer in China in terms of sales had this to say: </p><p>“All these exert mounting pressure on all participants in the property
market, which has slid rapidly into severe depression.“</p><p>There’s also still no light at the end of the tunnel on covid-zero policies. A lot of narratives hang on the People’s Congress and what will come afterwards. That starts October 16 and may overshadow everything else on the economic calendar for the remainder of the year.</p>

This article was written by Adam Button at www.forexlive.com.

<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/welcome-to-jobs-day-in-the-us-20220902/“>Welcome to jobs day in the US</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/usdjpy-bulls-locked-and-loaded-above-14000-20220902/“>USD/JPY bulls locked and loaded above 140.00</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/pipeline-operator-data-suggests-nord-stream-flows-to-be-back-on-saturday-as-planned-20220902/“>Pipeline operator data suggests Nord Stream flows to be back on Saturday as planned</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-july-ppi-40-vs-37-mm-expected-20220902/“>Eurozone July PPI +4.0% vs +3.7% m/m expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-july-trade-balance-54-billion-vs-48-billion-expected-20220902/“>Germany July trade balance €5.4 billion vs €4.8 billion expected</a></li></ul><p style=““ class=“text-align-justify“>Markets:</p><ul><li>EUR leads, JPY lags on the day</li><li>European equities higher; S&P 500 futures flat</li><li>US 10-year yields flat at 3.263%</li><li>Gold up 0.6% to $1,706.13</li><li>WTI crude up 2.2% to $88.52</li><li>Bitcoin up 0.3% to $20,141</li></ul><p style=““ class=“text-align-justify“>Markets are rather tepid as we count down to the US non-farm payrolls later in the day. That will set the tone before the long weekend, as we get another key data point before the FOMC meeting this month.</p><p style=““ class=“text-align-justify“>The dollar is softer though with EUR/USD climbing back up to parity, up 0.6% on the day. There are large option expiries to be mindful about so be wary of that before they roll off later in the day.</p><p style=““ class=“text-align-justify“>GBP/USD is also up slightly by 0.2% to 1.1570 but remains under threat for a break towards the March 2020 lows. Meanwhile, USD/JPY is staying perky above 140.00 as buyers are locked and loaded for the next upside leg – contingent on what the US jobs report has to offer later today.</p><p style=““ class=“text-align-justify“>Equities are lacking direction but European indices are higher in playing catch up to the late comeback by Wall Street yesterday.</p><p style=““ class=“text-align-justify“>It’s all about the NFP now as we look towards the closing stages of the week.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>The pipeline is under maintenance at the moment but is slated to be back up and running tomorrow. That said, capacity has dwindled down to 20% and the above remarks by Russia is hardly encouraging for how things might continue to keep up in the coming months.</p><p style=““ class=“text-align-justify“>For some context, the only working turbine at the key compressor station for the pipeline is said to need technical maintenance every 1,000 hours. That means we are likely to see another brief shutdown again in mid-October.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>That might play into positioning flows ahead of the weekend and trading sentiment early next week, so just be mindful of that. Canadian markets will also be closed, so just a bit of a heads up.</p>

This article was written by Justin Low at www.forexlive.com.

<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-holds-firm-so-far-on-the-session-20220901/“>Dollar holds firm in European trading</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/equities-stay-under-pressure-so-far-on-the-day-20220901/“>Equities stay under pressure, no lasting relief this week</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eus-von-der-leyen-to-outline-ideas-for-energy-price-caps-on-14-september-20220901/“>EU’s von der Leyen to outline ideas for energy price caps on 14 September</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/icymi-chinas-chengdu-and-its-21-million-population-enters-lockdown-20220901/“>ICYMI: China’s Chengdu and its 21 million population enters lockdown</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-august-final-manufacturing-pmi-496-vs-497-prelim-20220901/“>Eurozone August final manufacturing PMI 49.6 vs 49.7 prelim</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-july-retail-sales-19-vs-00-mm-expected-20220901/“>Germany July retail sales +1.9% vs 0.0% m/m expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-august-final-manufacturing-pmi-473-vs-460-prelim-20220901/“>UK August final manufacturing PMI 47.3 vs 46.0 prelim</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-august-nationwide-house-prices-08-vs-01-mm-expected-20220901/“>UK August Nationwide house prices +0.8% vs +0.1% m/m expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/switzerland-august-cpi-35-vs-34-yy-expected-20220901/“>Switzerland August CPI +3.5% vs +3.4% y/y expected</a></li></ul><p>Markets:</p><ul><li>USD leads, EUR lags on the day</li><li>European equities lower; S&P 500 futures down 0.3%</li><li>US 10-year yields up 6 bps to 3.193%</li><li>Gold down 0.6% to $1,700.63</li><li>WTI crude down 1.3% to $88.35</li><li>Bitcoin down 0.6% to $20,080</li></ul><p style=““ class=“text-align-justify“>With one more day to go to the US jobs report, the dollar is back in favour again as we flip the page from August to September. Equities and bonds were sold off since Asia trading and that is also helping to keep the dollar in control today.</p><p style=““ class=“text-align-justify“>The news front in Europe wasn’t too significant but China is locking down yet another city, its largest one since Shanghai at the start of the year. But as we continue to count down to the Fed in the bigger picture, the dollar continues to maintain its allure while risk trades are looking rather soft towards the end of the week.</p><p style=““ class=“text-align-justify“>EUR/USD fell from 1.0030 to near parity and is holding at the lows now, while USD/JPY hit its highest levels since 1998 in Asia trading before holding just under that around 139.20-40 levels in Europe. The pound continues to suffer with GBP/USD slipping to 1.1550 and is holding near the lows now, down 0.5% to 1.1560 levels.</p><p style=““ class=“text-align-justify“>Meanwhile, USD/CAD is pulling higher towards 1.3200 while AUD/USD briefly dropped below 0.6800 but is now down 0.1% to 0.6830 on the day.</p><p style=““ class=“text-align-justify“>There is little relief in the equities space with European indices pressured lower by over 1% while US futures have kept lower throughout the session as well.</p><p style=““ class=“text-align-justify“>It’s a brand new month but we’re still carrying over the same old themes from the past few weeks. So, carry on as you will until we get to the NFP release tomorrow and then the long weekend in the US.</p>

This article was written by Justin Low at www.forexlive.com.

<ul><li>Prior 25.81k</li></ul>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>There is no lasting relief for stocks so far this week as the selling continues for another day. European indices are pressured lower today alongside US futures, which look set to make for a rough open once Wall Street gets out of bed later in a few hours. The technicals are also not looking too pretty so that’s a warning sign as well (<a target=“_blank“ href=“https://www.forexlive.com/news/eurostoxx-futures-07-in-early-european-trading-20220901/“ target=“_blank“>DAX </a>and <a target=“_blank“ href=“https://www.forexlive.com/news/equities-fail-to-find-any-lasting-relief-so-far-this-week-20220901/“ target=“_blank“>S&P 500</a>). Here’s a snapshot of the situation at the moment:</p><ul><li>Eurostoxx -1.3% </li><li>DAX -1.2%</li><li>CAC 40 -1.3%</li><li>UK FTSE -1.4%</li><li>S&P 500 futures -0.7%</li><li>Nasdaq futures -1.0%</li><li>Dow futures -0.5%</li></ul>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>Socioeconomic pressures are rising across the world as cost-of-living worries and soaring inflation make for tough times, and this is but another small episode. Lufthansa says that some flights today will also be cancelled and it could not rule out further cancellations or delays over the weekend as well.</p><p style=““ class=“text-align-justify“>One of the more striking scenes with regards to worker strikes as of late was the Edinburgh ‚bin strike‘ – which lasted for 12 days. The images were quite something:</p>

This article was written by Justin Low at www.forexlive.com.