📆 Friday, September 6
► European stocks are heading for their worst week since early August, with the Stoxx 600 down 0.3% amid concerns over upcoming US jobs data. Germany recorded a trade surplus of €16.8B in July, but industrial production dropped by 2.4% over the previous month. France reported a trade deficit of €5.9B, with both exports and imports decreasing in July. Industrial production in France also fell by 0.5%. These economic indicators that continue show weakness (especially in Germany) have contributed to the cautious tone in European markets as investors look ahead to the US Federal Reserve's next move.
► US stock futures declined ahead of the August nonfarm payrolls & unemployment reports (due 12;30 UTC+0), with Nasdaq 100 futures down over 0.5% and S&P 500 futures down 0.4%. Markets are awaiting the jobs data to gauge the likelihood of a “jumbo” rate cut (50-bps instead of 25-bps) later this month. 10-year US Treasury yields dipped by 3 basis points to 3.70%. Expectations for a 25 basis-point rate cut remain strong, but there is a 35% chance (according to swap markets) the Fed could deliver a larger 50 basis-point reduction.
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