Non-Farm Payrolls dominate market interest

August 4, 2017

A big night ahead for markets, with most of the activity centred around the US.

The US Non-Farm Employment Change data is set for release tonight. The Unemployment Rate and the Average Hourly Earnings figures will also accompany the Non-Farm data. These figures are significant as they give a broader look at the jobs market in the US. These figures are also used by the Fed Reserve to help them determine whether to change monetary policy settings at their interest rate meetings. As the economy inches closer to full employment, the Average Hourly Earnings figure becomes even more important to the economy. Wage increases are vital to keep the economy growing as it ensures consumers are able to keep up with cost of living pressures. A continual weak wage growth figure has the potential to make people poorer as they cannot keep up with the basic cost of living expenses. Wage growth also allows for more disposable income to be spent within the economy, thus contributing to economic growth. The US is also publishing Trade Balance data.

Elsewhere around the world, Europe is publishing European Retail PMI, German Factory Orders and Italian Retail Sales data. Finally, Canada is reporting Ivey PMI, Employment Change, Unemployment Rate and Trade Balance figures.