Global markets are awaiting economic data that could shape the Federal Reserve’s September interest‑rate decision. Stocks have been muted, the dollar has steadied near five‑week lows, and gold has surged to record highs. Market expectations indicate an 89 % probability that the Fed will cut rates by 25 basis points.
The upcoming data releases will be pivotal. Friday’s U.S. nonfarm payrolls report, preceded by figures on job openings and private payrolls, will provide a clearer view of the labor market. Additionally, the August U.S. inflation report, due on September 11, will be closely watched. The prospect of lower borrowing costs has helped Wall Street stay near record highs, and stocks in other regions have also risen in recent weeks.
In Asia, MSCI’s broadest index of Asia‑Pacific shares outside Japan was flat on Tuesday. Nasdaq futures slipped 0.1 % and European futures eased 0.07 %. U.S. markets were closed on Monday for a holiday, leaving Asian traders with few cues. In China, AI‑driven enthusiasm gave way to profit‑taking, and the blue‑chip CSI300 index fell 0.9 % after hitting a three‑year high for the third consecutive session. Hong Kong’s Hang Seng index eased 0.6 % after a 2 % surge on Monday.
The dollar has reclaimed some losses ahead of the European open. The euro fell 0.16 % to $1.16925 and sterling slipped 0.17 % to $1.35264. The yen weakened 0.3 % to ¥147.70 per dollar after the Bank of Japan’s deputy governor warned of global economic uncertainty. The dollar index rose 0.2 % to 97.847, still near the five‑week low reached on Monday. Meanwhile, the yield on benchmark U.S. 10‑year Treasury notes rose 2.4 basis points to 4.249 %.
As investors await these key data points, attention will remain on the Fed’s potential rate cut and its implications for global markets. The next few days, highlighted by the nonfarm payrolls and inflation reports, will be crucial in shaping market expectations and the central bank’s next steps.
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