As investors return from the summer holidays, this week brings several key data points that could influence markets. Here’s our Head of Investments, Andrew Prosser, with the key things for investors to be aware of this week.
US markets closed for Labour Day
Today (Monday), US markets are closed for Labour Day. This national holiday celebrates workers’ contributions to the country’s development and marks the unofficial end of summer in the US. Trading volumes are therefore expected to be quieter to start the week.
Eurozone inflation data
On Tuesday, attention shifts to the Eurozone, where new inflation figures will be released. These numbers could signal whether further interest rate cuts are likely later this year.
Current market pricing suggests roughly a one-in-three chance of a cut, so investors will be watching the data closely.
US non-farm payrolls
Friday brings the highlight of the week: US non-farm payrolls. This monthly release tracks the number of workers in paid employment, excluding the farming sector where seasonal swings make comparisons difficult.
The data is widely watched because employment trends are a key factor in the US Federal Reserve’s decisions on interest rates. For August, economists expect an increase of around 73,000 jobs, alongside a small rise in the unemployment rate.
If the figures come in stronger or weaker than expected, markets could see sharp moves as investors reassess the outlook for US growth and interest rates.
Why it matters for investors
Economic data like inflation and employment helps shape central bank decisions on rates, which in turn influence everything from bond yields to equity markets.
While it’s impossible to predict outcomes, keeping track of these releases provides useful context for long-term investors.
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