Guardian Weekly Market Report – Issue 137

Reports of Note Due This Week

The September nonfarm jobs report is out on  Friday as the Federal Reserve watches for softness in the labour market. Also out is manufacturing and services sector survey results along with construction spending and factory orders.

• Monday, Sep 30 – 9:45 A.M. sees the Chicago Business Barometer(PMI) for Sept..
• Tuesday Oct 1 – At 9:45 A.M.  we see the S&P final U.S. manufacturing PMI. Then at 10:00 A.M. it is ISM manufacturing, construction spending and job openings.
• Wednesday Oct 2 – At 8:15 A.M. , ADP employment.
• Thursday Oct 3 – We start the day at 8:30 A.M. with the Weekly Initial Jobless Claims. They are expected to be unchanged at 218,000 versus last weeks 218,000. Then at 9:45 A.M. we see theS&P final U.S. services PMI. At 10:00 A.M. the ISM services PMI is released and factory orders.
• Friday Oct 4 – At 8:30 A.M. U.S. nonfarm payrolls are expected to come in at 144,000 versus 142,000 last month. and U.S. unemployment rate is expected to be unchanged at 4.2%.

Geopolitics

Chinese financial markets saw significant gains, with the CSI 300 index rising by 15.7% this week, its best performance since November 2008, while the Hang Seng index climbed 12.75%, marking its best week since February 1998. These surges were supported by economic stimulus measures from China’s central bank, including a cut in the reverse repurchase rate and the reserve requirement ratio. The People’s Bank of China aimed to enhance the monetary environment to support stable economic growth amidst challenges like a significant drop in industrial profits and transaction issues on the Shanghai Stock Exchange. Other Asian markets also saw varied movements amid regional economic updates.

Tens of thousands of people fled southern Lebanon as Israel intensified airstrikes on Hezbollah targets, resulting in over 550 deaths. The escalation has heightened fears of a broader regional conflict. The EU’s foreign policy chief described the situation as akin to a “full-fledged war.” The U.N. estimates that tens of thousands have been displaced. The strikes are in response to cross-border attacks by Hezbollah, following an Oct. 7 incident that saw significant casualties and hostages taken by Hamas in Gaza. Amidst this, the international community, including the U.S., is seeking ways to mediate, with proposals for a ceasefire being discussed.

At the United Nations General Assembly, global leaders convened amid worldwide conflicts. President Joe Biden, addressing the assembly for the last time as president, urged international unity in facing these crises. Key discussions focused on escalating Middle East tensions and Russia’s conflict with Ukraine. The assembly featured notable speakers, including the Secretary-General and leaders from Brazil, Turkey, and Iran, addressing major global challenges and seeking collaborative resolutions. Security and peace, particularly in conflict regions, dominated the agenda, reflecting the urgency of diplomatic engagement and cooperation.

Israeli Prime Minister Benjamin Netanyahu strongly criticized the United Nations in his speech, labeling it a “house of darkness” and accusing it of bias against Israel. He refuted allegations made against Israel by other U.N. speakers, asserting Israel’s right to defend itself against attacks. Netanyahu emphasized the necessity of achieving a decisive victory and portrayed Iran as a primary adversary in regional conflicts. Amidst his speech, protests occurred outside the U.N., with demonstrators voicing opposition to Netanyahu and calling for an end to hostilities in Gaza and Lebanon.