It is Friday, and the last month of the quarter has started. Along with this, the US has dropped its much awaited non-farm payroll with a storm of manufacturing data to close out of varied economic reports that had also included an upside Chinese surprise.
With the labor market in the US still remaining tight, the Federal Reserve is searching for more cooling indications; however, it is not as cool as the central bank has tried to achieve a soft landing.
Markets have been priced in only one in ten chances of a hike in the rate at the Federal Reserve’s next meeting dated in September, but stay uncertain for the rest of the year.
Officials from the Federal Reserve have not made the job of prognosticators any easier with their multiple varied comments; however, a couple are lined up to speak yet again on Friday and may offer fresh clues regarding the mood in the Central Bank of the United States.
Meanwhile, an enjoyable surprise came from China, where a survey of the private sector showed factory activity within the second largest economy in the world ticked back into an expansive territory.
It is, however, way too early to celebrate such a major shift in the recent trends; however, the property sector and even weaker household consumption are still weighing pretty heavily.
The economic troubles of China influenced three of the largest banks in the country to cut their rate of interest on Friday across a wide range of deposits to lighten the pressure on their margins.
The stock market in China shook off its recent despondency in the Asian morning, with the real estate index blue chip and other financial sub indexes that led the charge. The parade of PMI data still marches on, with multiple surveys due from host of countries within the Euro block on Friday.