Investors are eagerly awaiting Friday’s US jobs report, as it will provide insight into the Federal Reserve’s potential interest rate cut later this month. Economists predict that 163,000 jobs were added to US payrolls in August, but forecasts vary widely.
After Fed chair Jay Powell expressed concerns about a weaker labor market at the recent symposium in Wyoming, the market is closely watching the job numbers. The uncertainty over whether the rate cut will be a quarter-percentage point or a half-percentage point is reflected in futures pricing.
Following a disappointing July report, where payrolls fell short of expectations, investors are on edge. If August’s numbers also disappoint, it could lead to increased speculation of a deeper rate cut by the Fed.
Meanwhile, the FTSE 100 is nearing a record high, buoyed by political stability in the UK and a strengthening pound. European investors are optimistic about the index’s performance, especially with its limited exposure to technology stocks.
In Turkey, inflation is expected to have decreased in August, signaling progress in the country’s economic reform efforts. The central bank’s aggressive tightening of monetary policy has helped stabilize the economy, although challenges remain ahead.