• Indices futures point to a weaker opening in Europe, following weak sessions in the US and Asia
  • Investors await labor market data (NFP) from the US scheduled at 1:30 PM BST 
  • German industrial production much lower than expected (-5.3% YoY vs -3.5% exp.)
  • Broadcom (AVGO.US) results failed to improve sentiment in the chip sector. The company's shares are losing 7%

Today, the markets' attention will focus on the NFP report from the US, which is likely to determine the overall picture of the US labor market and perhaps cause Jerome Powell to make a final decision and cut rates in September by 50, or 25 basis points. Analysts expect a drop in unemployment and a stronger reading relative to July, although recent labor market data (JOLTS, ADP, Challenger report) do not seem to be a positive predictor for such a scenario.

Semiconductor manufacturer Broadcom yesterday reported results for the quarter ended in early August; the scale of the beat in earnings and revenue forecasts was small, and the revenue forecast for the current quarter appeared to be in line with Wall Street estimates. As a result, shares today lost nearly 7% before the US open and put further pressure on the chip sector. The company expects sales of AI products this year to reach $12 billion, having expected $11 billion at the beginning of the year. Without the contribution from the acquired VMware, the company's sales would have grown by 4% y/y, thanks to the acquisition the growth was 18% y/y.

Macro calendar

10 AM BST - Eurozone GDP revision, expected unchanged at 0.6% y/y and 0.3% k/k in Q2

1:30 PM BST - US Non-Farm Payrolls for August: expected 165k vs. 114k previously

  • Private change: 140k vs. 97k previously
  • Manufacturing change: -2k vs. 1k previously
  • Wage growth Monthly: 0.3% vs. 0.2% previously
  • Unemployment rate, expected 4.2% vs. 4.3% previously

1:30 PM BST - Canadian employment change, expected 25k vs. -2.8k previously

  • Unemployment rate: 6.5% vs. 6.4% previously

Central bankers' speeches

  • Fed Waller - 4 PM BST
  • Fed Williams - 1:45 PM BST

Germany industrial readings

German Industrial Production YoY: -5.3% (Forecast -3.5%, Previous -3.92%)

German Industrial Production MoM: -2.4% (Forecast -0.5%, Previous 1.4%)

  • German Imports MoM: 5.4% (Forecast 0.7%, Previous 0.3%)
  • German Exports MoM:1.7% (Forecast 1.1%, Previous -3.4%)