In the US, markets remain little changed in anticipation of key US job figures (NFPs). Yesterday the Nasdaq rose slightly (+0.11%), the S&P 500 saw a minor dip (-0.16%), and the Dow dropped by (-0.48%). The USD index is also unchanged. US market watchers are on edge, awaiting insights from Friday's payroll data (12:30 UTC+0). Widespread speculation on whether the potential slowdown in the US job market will impact the Fed's tightening measures or even prompt early rate cuts given signs of economic deceleration. 

European markets are equally anxious with fears of stagflation fueled by recent price data and pessimistic ECB remarks. European indices are mixed, but benefited slightly from poor manufacturing data, which complicates further rate hikes by the ECB. Energy majors are seeing gains in the Stoxx Europe 600 as oil prices anticipate their largest weekly surge since April. Meanwhile, metal prices are up thanks to China's recent stimulus moves, benefiting miners. UK housing takes a blow as a key mortgage lender reports the steepest fall in house prices in 14 years for July. However, UK equities edge up, outperforming European counterparts.

Eurozone Manufacturing PMI increased to 43.50 in August 2023 from 42.70 in July; Germany's edged up to 39.1 from July's 38.8, both remain in contraction territory with ongoing concerns of weak demand. France's Manufacturing PMI rose slightly to 46 in August from 45.10 in July 2023, still below its long-term average, with sharp decreases in new orders and the quickest fall in charged prices since August 2016. Manufacturing data remain deep in recessionary territory.

China's economic intervention sends the MSCI Asia Pacific Index on an upward trajectory for the second week. Measures include lowering down payments for homes in major cities and nudging lenders to reduce mortgage rates. The CNY sees some strength after the People's Bank of China announces a cut in the foreign exchange reserve requirement ratio. However, selling returned towards the end of Chinese trading resulting in negative closings for key Chinese indices + Hang Seng.

Chinese manufacturing data came in slighty better than expected. The Caixin China General Manufacturing PMI records an increase, showcasing an improvement in factory activity since February. However, concerns over internal demand and external demand uncertainties put continuing pressure on the Chinese economy. 

 Oil is poised to break its two-week decline, with US West Texas Intermediate crude slightly up, trading at $84 a barrel range and Brent crude at $87 a barrel range. We see Gold finding support at $1,940 - waiting for more guidance from NFP data which will have a strong impact on the USD and yields.

Key events today:

CNY Caixin Manufacturing PMI - 01:45 UTC+0 (released)

GBP Nationwide Housing Prices - 06:00 UTC+0 (released)

EUR HCOB Manufacturing PMI - 07:15 UTC+0 (released)

EUR HCOB Manufacturing PMI - 07:45 UTC+0 (released)

EUR HCOB Manufacturing PMI - 07:50 UTC+0 (released)

EUR  HCOB Manufacturing PMI - 08:00 UTC+0 (released)

GBP S&P Global/CIPS Manufacturing PMI - 08:30 UTC+0 (released)

CAD GDP Growth Rate - 12:30 UTC+0 

US Non Farm Payrolls, Unemployment Rate - 12:30 UTC+0

US ISM Manufacturing PMI - 14:00 UTC+0