European stocks and U.S. futures start September on back foot
Share markets fell slightly on Monday as investors braced for a data-packed week culminating in a U.S. jobs report that could decide whether a rate cut expected this month will be regular or super-sized.
Survey data on Monday showed new manufacturing export orders in China fell for the first time in eight months, although the sector as a whole returned to growth.
Wins for the populist parties in German state elections added a fresh layer of political uncertainty in European markets, while a holiday in the United States and Canada made for thin liquidity.
Europe's STOXX 600 index fell 0.35%, after hitting a record high on Friday. Germany's DAX and Britain's FTSE 100 were down 0.21% and 0.1% respectively.
Futures for the U.S. S&P 500 index were down 0.15%, while those for the tech-laden Nasdaq 100 were 0.24% lower.
U.S. stock markets will be closed for Labor Day on Monday and Treasuries were untraded.
The big event of the week will be the U.S. non-farm payrolls report on Friday, which is expected to show the economy added 165,000 jobs in August, up from 114,000 in July.
Traders currently think a September Federal Reserve rate cut is nailed on and see a 33% chance that it could be an outsized 50-basis point reduction, but that could shift on Friday.
Source: Reuters
