U.S. jobs & an OPEC oil gathering

Key U.S. job numbers on Friday and an OPEC+ meeting on Monday to assess oil output as crude prices surpass $80 per barrel are on the menu for markets as 2021 enters the home stretch after a rocky third quarter.

The following are the five stories likely to occupy the minds of investors and traders in the coming week:

1-DECENT JOBS

According to a Reuters poll, 500,000 jobs are expected to be added following August’s big miss. The Fed’s monthly purchases of $120 billion in government bonds helped the S&P 500 more than double from its March 2020 lows. However, the possibility of tapering and rate hikes has pushed up U.S. Treasury yields, contributing to the S& P 500’s 4% loss in September.

Stronger-than-expected figures may fuel concerns that the Fed will end its easy-money policies sooner than planned, perhaps creating more market instability. “Reasonably Good” September job growth begins the Fed taper. Is another flop on the way? -As Treasury yields rise, the ARK fund suffers as a result of the broader tech selloff.

2-RATES DOWN UNDER

The Reserve Bank of New Zealand appears poised to act on Wednesday. Markets are expecting a quarter-point increase in the benchmark rate to 0.5 percent. Governor Adrian Orr and his team were preparing to be the first people in the industrialized world to trek in August. The Reserve Bank of Australia meets on Tuesday and is at the opposite end of the hawk-dove spectrum. Despite a booming housing market, Governor Philip Lowe recently threw cold water on needs. He stated that it was difficult to comprehend why rate hikes are being priced in next year or early next year.

3-WINTER OF DISCONTENT

Power outages in China, long lines at gas stations in the United Kingdom, and skyrocketing energy prices elsewhere.

Headlines harken back to the 1970s, nowhere more so than in the United Kingdom, where the army will assist in alleviating a fuel crisis that has resulted in gaps on supermarket shelves and clashes at service stations.

For some, a “winter of discontent” akin to the 1970s, strikes and power outages brought the British economy to its knees, is on the horizon. However, Britain is not alone. Any signs that the strains on supply chains, labor shortages, and energy prices are easing would be welcomed, particularly by the battered pound.

4-PUMP IT UP

OPEC+ (Organization of Petroleum Exporting Countries and allies led by Russia) officials convene on Monday to review output strategy. Oil prices are at three-year highs around $80 per barrel, and consumer demand for more excellent supply is high. However, with prices inflated by unanticipated outages in the United States and a robust demand rebound following the pandemic, that mindset may be changing. According to OPEC+ sources, they are considering more oil as a scenario.

5-BUMPY HOMESTRETCH

Over the last three months, Chinese markets have experienced some of their steepest drops in history. Energy prices have skyrocketed, shipping and commodity costs have skyrocketed. The most apparent evidence yet has emerged that central banks are beginning to turn off the money faucets.

The upheaval has resulted in the first quarter of losses for global markets since COVID-19 began to take its toll early last year, a wobbly September for bonds amid taper chatter and the safe-haven dollar on track for its best year since 2015.