US investors are eyeing a keenly awaited non-farm payrolls report, which will offer a broad snapshot of the labour market as the Trump administration took office. Economists project employers added 175,000 jobs — not far off from last year’s monthly average — following an increase of 156,000 in December. The jobless rate is expected to remain at 4.7 per cent, a level the Fed considers at or near full employment, with a smaller pick-up in wages of 0.3 per cent. On the first day of trading following a week-long Lunar New Year, Chinese equities fell and the yuan weakened as the PBOC raised interest rates on open market operations by 10 basis points. It’s yet another lever to slow down a rampant build-up in debt among Chinese corporates.
Meanwhile, China’s Caixin manufacturing PMI for January slowed from December, with the reading coming in at 51.0, down from 51.9 the previous month. European Council president Donald Tusk has delivered a stark warning about the threat Donald Trump poses to the future of the EU. On the eve of the latest summit of EU leaders in Malta, he criticised the “worrying declarations” made by the new American administration. Yields on UK bonds are ticking higher after disappointing PMI data, which showed a January composite reading of 55.2 versus 56.5, while the services figure recorded a four-month low. Meanwhile, the euro zone’s final January composite PMI reading was 54.4, matching December’s number, while the new business PMI rose to 54.3, the highest since November 2015. [Seeking Alpha]
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