Market Commentary – September 6, 2021

Kevin Jock

6th September 2021

The US markets hold steady even though their jobs report comes in under forecast, with the S&P 500 share index ended the day only marginally lower. The Nasdaq index rose 0.2%, sitting a new closing high as the argument for near-term tapering was weakened.

European stocks slipped on Friday as the US job data pointed towards slowing growth, with retail and travel stocks exposed to American market suffering the most. STOXX 600 index slipped 0.6%, marking its worst fall in two weeks, while FTSE 100, CAC 40 and DAX fell 0.36%, 1.08% and 0.37% respectively.

On the other hand, in terms of the Asian market’s Monday morning, it edged higher as a disappointing US payrolls report promised to keep policy there super-loose for longer. Japan’s Nikkei added 1.7%, extending a rally on hopes a new prime minister there would bring added fiscal stimulus while the Chinese blue chips gained 1.3%.

The EUR/USD pair jumped to its highest level since late June at 1.1909 on Friday after the greenback came under strong selling pressure during the US trading hours, as the USD selloff continues after the jobs report with the US dollar index dropped to a monthly low of 91.95 and allowed EUR/USD to shoot higher.


Figure 1 (Source: IS Prime) Bitcoin Daily :Disappointing non-farms drove demand out of the dollar and back into majors like the likes of EURUSD.

Headliner to Review

  • The US non-farm payroll data released on last Friday came out to be 235K, well below economist’s expectations for 733K positions in August. Such a dramatic decline shows a sign that the more contagious Delta coronavirus variant is influencing hiring plans as both the leisure and hospitality sector saw no job gains in August, as well as the retailers in which they suffered job losses.
  • The US Services PMI registered 61.7% in August, 2.4% lower than the all-time high reading of 64.1 in July. The August reading indicates the 15th straight month of growth for the services sector, which has expanded for all but two of the last 139 months.

Headliner to Watch

  • The Australia central bank (RBA) will release its rate statement in tomorrow. It is expected that they are more likely to revisit the question of whether to delay a planned taper of bond purchases as a worsening outbreak of the delta variant dims prospects of a repaid economic rebound.
  • The German ZEW Economic Sentiment index is also due to release, with the market consensus of 30.2, much lower than the actual figure of 40.4 from the previous month.

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