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Market snapshot: US inventory futures recommend a constructive begin on Wall Road

US stock market futures pointed to a positive start on Tuesday, with investors turning their attention to employment data at the end of the week. Meanwhile, stocks in Asia fluctuated after weak Chinese data exposed the impact of Covid-19 restrictions and regulatory raids.

What does the future of the US indicate?

Dow Industry Futures
JM00,
+ 0.15%
showed up around 70 points;

S&P 500 futures
ES00,
+ 0.11%
indicated an opening less than 0.2% higher;

Nasdaq 100 futures
NQ00,
+ 0.11%
suggested the tech-heavy index would open 0.3% into the green.

The Dow
DJIA,
-0.16%
fell 55 points on Monday to close at 35,399, trailing the S&P 500
SPX,
+ 0.43%,
which is up 0.4%, and the Nasdaq
COMP,
+ 0.90%,
which increased by 0.9%.

What is driving the markets?

Analysts noted that investors are paying attention to the US employment data coming later this week. Friday's August job report will give markets their next big chance to gauge when and how the Federal Reserve will begin slowing pandemic-era measures to bring liquidity to the markets.

“This will take center stage after (Fed Chair) Powell's speech in Jackson Hole, in which he said there has been 'clear progress towards maximum employment' and that he is in favor of the Fed's bond purchases in this one Year to throttle. "Said Henry Allen, analyst at Deutsche Bank.

"Our US economists expect the hiring pace to slow somewhat after the strong report in July, but the +700,000 non-farm workforce they forecast should be more than enough to keep the Fed going." to announce the throttling at the Federal Open Market Committee meeting in November, ”added Allen.

Also read: Fed Chairman Powell says he supports reducing bond purchases this year

In Asia, markets spent much of the day in the red after weak Chinese manufacturing and non-manufacturing data from China's purchasing managers' index (PMI) rocked stocks. The manufacturing PMI underperformed slightly, but stayed in expansion mode at 50.1, while the non-manufacturing PMI surprised this month, slipping from 53.3 to 47.5.

"Covid-19 lockdowns in various cities and critical ports have slowed domestic consumption and consumers have postponed travel as a result," said Jeffrey Halley, an analyst at broker OANDA.

"However, it is likely that continued government action in several sectors, particularly student education and technology, is having an impact on both employment concerns and broader consumer confidence as fears of wider intervention grow," Halley added.

The focus in Europe is on the Eurozone Flash Consumer Price Index for August, which is up 3% yoy over the expected 2.8%.

The US economic data on Tuesday includes the case-Shiller national house price index for June, as well as the Chicago PMI for August and the consumer confidence index for that month.

It's a bright day on the corporate earnings front, with NetEase, CrowdStrike and H&R Block reporting results.

Other markets

Asian stocks managed to make gains with Tokyo's Nikkei 225
NIK,
+ 1.08%
up 1.1% like the Hong Kong Hang Seng Index
HSI,
+ 1.33%
rose 1.3% and the Shanghai Composite
SHCOMP,
+ 0.45%
angular 0.5% higher

In Europe the FTSE is 100
UKX,
-0.27%
declined 0.1% while the pan-European Stoxx 600
SXXP,
+ 0.09%
increased by 0.2%; Paris CAC 40
PX1,
+ 0.18%
rose by 0.2% and the Frankfurt DAX
DAX,
+ 0.55%
moved by 0.6% into the green

The price of aluminum traded on the London Metal Exchange reached its highest level since May 2011, with the three-month aluminum price hitting $ 2,726.50 per tonne before settling at around $ 2,655.50. The surge – on the way for a seventh straight month in profits – comes amid production cuts in China due to tight controls on electricity usage.

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