REUTERS/Khalil AshawiFree Syrian Army fighters chat as one of them is seen through a hole in a wall in Deir al-Zor September 5, 2013. Picture taken September 5, 2013.
Good morning! Here’s what you need to know.
- With the exception of Japan’s Nikkei, which closed down -1.45%, Asian markets finished higher. Australia’s S&P/ASX gained 0.05%, Korea’s Kospi was up 0.19% and Hong Kong’s Hang Seng climbed 0.10%. European markets were lower across the board, with London’s FTSE trailing most at -0.63%. U.S. futures were all pointing higher.
- The jobs number disappointed. The U.S. economy added 169,000 jobs in August, missing expectations of 180,000. Most of the new jobs were part-time.
- Gold surged to 1.43% after the print, after being down about 0.40% earlier this morning. Oil has come down.
- Some analysts revised their NFP projections upward after an unexpectedly strong ISM manufacturing print this week. Here’s JPM’s Michael Feroli: “The August ISM nonmanufacturing index defied expectations for a modest decline and instead surged another 2.6 points to 58.6, the highest level since late 2005. The strong headline number was matched by solid details in most of the sub-indices: business activity climbed almost two points to 62.2, new orders were up almost three points to 60.5, and the employment index jumped almost four points to 57.0. While the employment data earlier in the morning were mixed, this report suggests a bit of upside risk to tomorrow’s BLS report.”
- The yield on the U.S. 10-year bond breached 3% for the first time since July 2011 just before 5 pm yesterday. It’s fallen back below that level this morning, but could jump on a stronger jobs report, which could give the Fed more ammunition to begin tapering its bond-purchasing program.
- The Mexican peso and Chinese yuan bounced the Swedish krona and Hong Kong dollar to round out the top 10 most-traded currencies in the Bank of International Settlements’ latest triennial survey. The dollar, Euro and yen have held the top-three spots since 2001.
- Friday’s European data wasn’t great. German exports showed a surprise drop, while the UK’s July industrial output missed forecasts and its trade deficit widened. On the bright side, UK home prices saw their seventh-straight month of gains, and French consumer confidence increased.
- Greece will need a third bailout, Eurozone finance minister chair Jeroen Dijsselbloem said. WSJ’s Matina Stevis writes: “Mr. Dijsselbloem, who was speaking at the European Parliament in Brussels, said it was “clear that despite recent progress” in Greece, the country wouldn’t be able to fully finance itself from borrowing in the capital markets at the end of its [current] bailout, in late 2014.”
- An agreement is expected to emerge from this week’s G-20 meeting that would prevent multinational firms from operating subsidiaries designed solely to shield them from tax burdens. The New York Times’ Andrew E. Kramer writes: “The effort at tax reform, if enacted widely, would squeeze more money from multinational corporations and shift a portion of the global tax burden from individuals and small businesses to large corporations. The proposal is for countries to better coordinate tax treaties to close loopholes that multinational corporations exploit by registering in tax havens like Delaware or the Cayman Islands. Another tactic of concern is shifting profits to low-tax jurisdictions and costs to high-tax ones.”
- After a sluggish start, the Denver Broncos trounced last year’s Super Bowl-winning Baltimore Ravens 49-27 in the NFL’s regular season opener. Broncos QB Peyton Manning completed 27 of 42 passes for 462 yards and a record-tying seven touchdowns, with 0 interceptions. The game would have been even more of a blowout if not for this.