- The European session opens lower following sharp declines in Asian indices
- US labor market data in focus
- Trade balance and ISM data from the US
Today's market day started with significant declines in Chinese indices. Futures on HKComp and CHNComp were down over 2%. The cash session opening in Europe showed a slightly less nervous sentiment. The main German index, DAX, is down 0.4% after stronger-than-expected month-on-month factory orders.
Yesterday's release of the FOMC minutes did not bring much volatility to the markets, and the major indices only reacted with minor declines. However, today the markets are focused on the ADP report from the US labor market, which can provide insight into the current state of the US economy. We will receive the Challenger job-cut report at 12:30 pm BST, followed by the ADP report at 1:15 pm BST. The forecasted data does not indicate a significant weakening in the job market. Month-on-month, employment in June is expected to increase by +230k compared to +278k the previous month.
Detailed schedule for the day:
12:30 pm BST, USA - Challenger Job-Cut for June:
- Previous: 80.09k
1:15 pm BST, USA - ADP Employment Report for June:
- Expected: 230k MoM, Previous: 278k MoM
1:30 pm BST, USA - Trade Balance for May:
- Expected: -69 bn USD, Previous: -74.6 bn USD
1:30 pm BST, USA - Initial Jobless Claims for the previous week:
- Expected: 246k, Previous: 239k
3:00 pm BST, USA - ISM Non-Manufacturing and Business Activity for June:
- Business Activity: Expected: 51.1, Previous: 51.5
- ISM Non-Manufacturing: Expected: 51, Previous: 50.1
- ISM Non-Manufacturing Prices: Expected: 53.2, Previous: 56.2
Central bank speeches:
- 1:45 PM BST - Logan, FOMC Member
