Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


World Week Ahead: Focus on US jobs, ECB

World Week Ahead: Focus on US jobs, ECB

By Margreet Dietz

Sept. 1 (BusinessDesk) - US employment data and a meeting of policymakers at the European Central Bank will renew the focus on when interest rates will begin to rise in the US, and the degree and timing of additional stimulus in the euro zone.

The state of the labour market in the US will be revealed in the ADP employment report, due Wednesday, weekly jobless claims, due Thursday, and the employment report for August, due Friday.

Last month, in Jackson Hole, Wyoming, US Federal Reserve Chair Janet Yellen warned that “the labour market has yet to fully recover.”

On Friday, the Standard & Poor’s 500 Index finished the session at a record 2,003.37.

"We reached and closed above the 2,000 milestone … and that gets the mental obstacle out of the way," Andre Bakhos, managing director at Janlyn Capital in Bernardsville, New Jersey, told Reuters.

"Economic numbers have been positive for the most part, people are drawing comfort from these numbers, using them as a justification for optimism,” Bakhos said.

Other US data due in the coming days include reports on the PMI and ISM manufacturing indices, as well as construction spending, due Tuesday; factory orders, due Wednesday; and international trade, productivity and costs, the PMI services index and the ISM non-manufacturing index, due Thursday.

On Wednesday, the Fed releases its Beige Book. Investors will also hear from several Fed officials.

On Thursday, Cleveland Fed President Loretta Mester will talk about the economic outlook, monetary policy, and communications, in Pittsburgh, Fed Governor Jerome Powell is scheduled to speak to NYU Money Marketeers, while Minneapolis Fed President Narayana Kocherlakota will address a town hall forum in Helena, Montana.

On Friday, Philadelphia Fed President Charles Plosser discusses the economic outlook at Amelia Island, Florida, while Boston Fed President Eric Rosengren talks to the New Hampshire and Vermont Bankers Association in Boston.

For the week, the S&P 500 gained 0.75 percent, the Dow Jones Industrial Average added 0.57 percent, while the Nasdaq Composite Index climbed 0.92 percent.

With last week’s advance, the Dow has increased 4.8 percent so far in 2014, while the S&P 500 has added 9.9 percent, and the Nasdaq has risen 10.6 percent.

US markets are closed today for the Labor Day holiday, marking the traditional end to the summer season in North America.

In Europe, the Stoxx 600 jumped 1.6 percent last week, while the UK’s FTSE 100 Index rose 0.7 percent. European bonds also rallied, pushing German 10-year yields nine basis points lower to 0.89 percent.

Investors tried to interpret European Central Bank President Mario Draghi comments made in Jackson Hole about a downgraded outlook for inflation and whether that meant further monetary stimulus in the form of asset purchases would be announced soon. Policymakers of the ECB gather on Thursday.

Last Friday a report showed that inflation in the euro zone fell to 0.3 percent in August, the lowest level in almost five years, and well under the ECB’s target of below, but close to, 2 percent.

“Inflation is very low, inflation expectations are drifting lower, but it’s premature to suggest deflation is inevitable,” Martin van Vliet, senior economist at ING Groep in Amsterdam, told Bloomberg News. “We need to see further signs of slowdown, an increased risk of a new downturn before they are willing to say we now have to implement full-blown [quantitative easing]; that’s the nuclear option.”

The latest data on the euro zone scheduled for release in the coming days include

German GDP, euro-zone manufacturing PMI, due today; euro-zone PPI, due Tuesday; euro-zone retail sales, due Wednesday; German factory orders, due Thursday; and euro-zone GDP on Friday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news