Marketmind: Kick that can

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A look at Sujatha Rao’s upcoming day

FILE PHOTO: As the global outbreak of the coronavirus disease (COVID-19) continues, a trader wearing a protective face mask walks past the New York Stock Exchange (NYSE) in the Financial District of New York, US, November 19, 2020 Businesshala/Shannon Stapleton

Everything is fine. At least until December 3 when the US Treasury will again clash against the newly increased debt limit, allowing Congress to put the market through the ‘will-they, will they’ agony.

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And European gas prices are now around a third of the peaks they saw earlier this week, though they’re still up about 300% year over year.

Still, it’s enough to put markets in a better mood – world stocks enjoyed their biggest daily jump on Thursday since May, while 10-year Treasury yields rose 1.6% on Friday, a four-month high. level reached. Chinese stocks also rose as the Caixin PMI showed an expansion in September services activity (following the August decline).

Commodity complexes and commodity currencies such as the Australian dollar also gained, although momentum is now starting to rise, with Wall Street opening flat and European futures a touch lower.

All eyes now turn to the 1230 GMT release of US payroll data, which a Businesshala poll predicted would add 500,000 jobs in September.

Remember what Fed boss Jerome Powell said last month – that he didn’t need a “knockout great super-strong employment report” to realize that the conditions for reducing stimulus were met. Chances are the data won’t do much to get the Fed out of its tapering course.

There are clearly other issues that are clouding the outlook. Gas prices may slide but oil continues to climb with Brent now around $83 a barrel. At what point does it start affecting world development?

Then there’s the Evergrande saga, which again affected the bonds and shares of Chinese property firms on Friday.

Key developments that will provide further direction to the markets on Friday:

– Eurovag sets listing price below threshold as soon as London debut

– ECB board member Fabio Panetta speaks at the BoE event.

– China September service activity returns to growth.

India SenBank has put rates on hold.

– Rising chip prices gave Samsung its best quarterly profit in 3 years.

– Insurer Chubb acquires Cigna’s Asian-Turkish business for $5.8 billion.

Ireland agrees to a global tax deal.

– German exports slumped for the first time in 15 months.

Graphic: The deep pandemic hole of the US labor market

Reporting by Sujatha Rao; Editing by Dhara Ranasinghe

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