The last couple of weeks has seen a number of Fed officials warn about the prospect of at least one rate hike this year - including Chair Yellen and some of her closest allies -- but with markets still not convinced, particularly by September, this Friday’s jobs report has become all the more important.
Wall Street was set to open little changed on Wednesday as investors looked forward to Friday's nonfarm payrolls data for a clearer picture on the health of the economy and the timing of the next interest rate hike.
Tuesday is likely to be one of the quieter days in an otherwise busy and important week for the markets, with investors having one eye on Friday’s US jobs report following Fed Chair Janet Yellen’s hawkish comments at Jackson Hole on Friday.
New orders for U.S. manufactured capital goods rose for a second straight month in July as demand for machinery and a range of other products picked up, offering a tentative sign that a business spending downturn was starting to ease.
U.S. employment rose more than expected for the second month in a row in July and wages picked up, bolstering expectations of faster economic growth, and raising the probability of a Federal Reserve interest rate increase this year.
China's July exports fell 4.4% and imports declined 12.5%. The weak state may give the Fed pause before increasing rates because of the China debacle a year ago after the Fed raised rates in December. It could also force China to add more stimulus at the same time. Yet, what also is providing support is talk about OPEC having a special meeting and rumors that they will try to bring back the concept of an oil production freeze.
It's jobs day in the U.S. and while this report may not be considered as important as some others, due to rate hike expectations being continually pushed back, it is still going to be extremely significant.