– Payrolls. This morning’s closely-watched U.S. jobs report is due at 8:30 a.m. ET with the median estimate of 97 economists surveyed by Bloomberg expecting an increase of 217,000 in non-farm payrolls. Dan Moss, executive editor for economy at Bloomberg News, says today’s report is so very special as it is the last significant data point ahead of the Federal Reserve’s September meeting, where there is still a reasonable chance of the first rate rise in close to a decade.
– G20 meets. The finance chiefs of the Group of 20 nations convene in the Turkish capital of Ankara where the emerging market slowdown and the prospect of higher U.S. interest rates are likely to dominate the agenda. According to a euro-area official at the talks, who spoke on the condition of anonymity, the current draft communique by the G20 does not mention Chinese market volatility, which several delegations are working to have included.
– Death cross. Equity markets in Europe, which rallied for the past two days, are dropping this morning as investors look for payrolls data and what that might mean for Federal Reserve policy. The Stoxx Europe 600 lost 1.7 percent by 11:00 a.m. London time. In Germany, the DAX Index’s 50-day moving average has dropped below its 200-day mean, a pattern that technical analysts call a death cross, as it is viewed as a sign that momentum is fading. The DAX has lost 18 percent since its record high in April and is now up only 3.5 percent for the year.
– Canada’s Economy Unexpectedly Adds Jobs in August on Services. Canadian employment grew by 12,000 during the month, bringing to 193,300 the number of new jobs over the past 12 months, Statistics Canada said Friday in Ottawa. The unemployment rate rose to 7 percent from 6.8 percent as more Canadians entered the labor force. Economists surveyed by Bloomberg had predicted a drop of 5,000 jobs in August.
Canada’s central bank cut interest rates twice this year and swaps trading shows some investors have been paring their bets on the possibility of another cut at the next decision on Sept. 9. The Canadian dollar pared losses after the report, down 0.3 percent to 1.3212 per U.S. dollar at 9:13 a.m. in Toronto. It had fallen as much as 0.5 percent.
– U.S. unemployment rate hits 5.1%, lowest in 7 years. The economy added 173,000 jobs in August. While it was a decent gain in jobs for the month, the number was below economists’ expectations and is likely to muddy the picture for the Federal Reserve’s historic decision to raise its key interest rate in two weeks.
Economists surveyed by CNNMoney projected that the economy would add 207,000 jobs.
Wages grew 2.2% in August, about in line with expectations but well below the Federal Reserve’s 3.5% target.
– More bad news from Europe. The European Central Bank on Thursday cut its forecasts for eurozone GDP growth this year and next, pointing the finger squarely at falling demand from China and other emerging economies. The ECB said it could increase its money printing program — and that sent the euro sharply lower. It recovered slightly Friday to trade 0.3% firmer against the dollar.
– Thursday market recap. Volatility took a breath yesterday. The Dow Jones industrial average changed by just 23 points closing 0.1% higher. The S&P 500 also added 0.1%, and the Nasdaq had the biggest change, dropping 0.4%.