(Reuters) – Global economic unease is growing and the closely watched monthly jobs report in the United States and inflation gauges in Europe will arrive in the coming week at a key juncture for markets and central banks.
A look at manufacturing activity in China is also due, while the euro is threatening to push decisively below the key $1-mark.
Here’s a look at the week ahead in markets from Dhara Ranasinghe, Tommy Wilkes and Vincent Flasseur in London, Lewis Krauskopf in New York, Kevin Buckland in Tokyo and Sumanta Sen in Mumbai.
Monthly U.S. jobs data on Sept. 2 will test the argument that the world’s biggest economy is in solid health, and indicate whether the Federal Reserve can engineer a “soft landing” even as it hikes interest rates to fight inflation that has been running at four-decade highs.
Those arguing against the prospect of a recession, despite two straight quarters of shrinking U.S. gross domestic product, have been able to point to the strong labour market, at least so far.
In July, nonfarm payrolls increased by 528,000 jobs, the largest gain since February. Early estimates for August are projecting an increase of 290,000, according to Reuters data.
Graphic: U.S. unemployment rates – https://graphics.reuters.com/GLOBAL-MARKETS/THEMES/zjvqkbbybvx/chart.png
2/ INFLATION SHOCK
Inflation in the euro area remains uncomfortably high, the flash August consumer price index on Wednesday is likely to show. That will only pile pressure on the European…
