Morning Brew September 2 - 2021

Good Morning

Markets are in a bit of a limbo ahead of the Nonfarm Payroll tomorrow as the next impulse on US monetary policy. The APD Employment figure came rather disappointing yesterday at 374k vs 613k expected. The Nonfarm payroll is expected at 750k but with a fairly large variance. High estimate is 1027 and the low 375

As expected, after the high EU inflation data, Bundesbank President Weidmann became vocal stating “The first P in PEPP stands for pandemic, not permanent, and for a good reason” urging near term tapering.

Equities remain high but are slightly lower over night with the US 30 at 35280, the US500 at 4522 and the US tech 100 at 15614. The Germany 30 is 15790. On the weak US data and Jens Weidmann, USD weakens and EUR gains, EURUSD trades at 1.1840 after a high of 1.1856, Gold trades 1813 and Silver 24.17. Bitcoin is near the 50k again, currently 49500 and Ethereum 3757.

Manufacturing PMIs from Asia show that the supply chain constraints are becoming worse and will cause production and shipping delays in Q3.

Apple will it would loosen the rules for certain in-app purchases in an agreement with Japan

The next target of Chinese regulation may be ride-hailing companies as 11 of them were invited to a meeting.

Watch for surprises in the initial jobless claims and the factory Orders at 14:30 and 16:00 respectively and still any comments from the US central bankers or also Europe regarding the high inflation. The ECB could well issue a statement that they view the current inflation as temporary or transitory, as a dovish statement to reign in Weidman.

(Refinitiv)