Sujata Raho’s view of the future

Everything is fine. All’s well.

European gas prices have fallen by around one-third from their peak earlier in the week. However, they are still up about 300% year over year.

It’s still enough to lift markets. World stocks saw their largest daily jump since May, while the 10-year Treasury yields rose to 1.6% on Friday, four months highs. Chinese shares also rose after Caixin PMIs revealed an increase in September services activity, following an August decline.

Although the gains have rippled through the commodity complex, commodity currencies and the Australian dollars too, momentum is beginning to wane now as Wall Street looks set for an open market and European futures looking a little lower.

Now all eyes will be on the U.S. Payrolls Data 1230 GMT Release, where a Reuters poll predicts that there will be 500,000 new jobs in September.

Keep in mind what Fed boss Jerome Powell stated last month — that it didn’t take a “knockout great super-strong job report” for him to believe that the conditions were met to reduce stimulus. The data is unlikely to change the Fed’s tapering strategy.

Other issues are clearly clouding our outlook. Although gas prices have fallen, oil prices continue to rise at $83 per barrel. What point will it begin to have an impact on world growth?

There’s also the Evergrande scandal, which again hit shares and bonds of Chinese property companies on Friday.

The following are key developments which should give more direction to the markets Friday

Eurowag places listing price under range, making London debut

– ECB board member Fabio Panetta speaks at BoE event.

China’s Sept Services Activity Returns to Growth

Rates at India Cenbank are held.

Samsung (KS) makes its highest quarterly profit for 3 years thanks to rising chip prices

Cigna to buy Cubb’s Asian business in Turkey for $5.8 billion.

Ireland accepts a global tax agreement

German exports drop for the first 15-months.

Graphic: U.S. labor market’s deep pandemic hole – https://graphics.reuters.com/USA-ECONOMY/JOBS-FED/dwpkragrevm/chart_eikon.jpg