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5 Things to Watch This Morning

Published 07/09/2015, 08:51 pm
Updated 07/09/2015, 08:54 pm
© Reuters.  5 Things to Watch Today: Wall Street closed, Fed, China volatility, Europe rebounds, Oil falls
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1. U.S. stock markets closed for Labor Day

Trade volumes were expected to remain light on Monday, with many investors in the U.S. away for the Labor Day holiday.

Trading in gold and other metals ends at 1:00PM ET, while U.S. stock markets are closed for trading all day.

2. Federal Reserve rate hike outlook remains in focus

Market sentiment remained subdued after mixed U.S. payrolls data failed to quell uncertainty over the prospect of a near-term interest rate hike from the Federal Reserve.

The Labor Department reported Friday that the U.S. economy added 173,000 jobs last month, below forecasts for an increase of 220,000 and slowing from gains of 245,000 a month earlier.

But the unemployment rate ticked down to 5.1%, its lowest level since April 2008 from 5.3% in July, while average hourly wages rose by a stronger-than-expected 2.2%.

The jobs report failed to provide much clarity on when the Federal Reserve will decide to raise short term interest rates. The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.

3. Shanghai roller-coaster continues

The Shanghai Composite, which reopened after a four-day extended weekend, took investors on a roller coaster ride, rising almost 2% after the open, only to turn negative after the midday break to end down 2.5%.

China's National Bureau of Statistics revised down the 2014 GDP growth rate to 7.3% from the previously announced 7.4% on Monday. China has set a growth target of about 7% for 2015, the slowest pace in 25 years.

4. European markets rebound from Friday's losses

A modest rebound in European equity markets helped soothe investors' tattered nerves.

European markets fell sharply on Friday as global stocks dropped after a mixed August jobs report failed to allay uncertainty about whether the Federal Reserve will increase interest rates later this month.

5. Oil futures extend losses as supply glut worries persist

Oil futures extended losses from the prior session on Monday, as ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated.

U.S. crude was down 62 cents, or 1.35%, at $45.43 a barrel, while Brent slumped 66 cents, or 1.33%, to $48.95 a barrel.

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