Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

JOLTs, Treasury Auctions, China Car Slump - What's Moving Markets

EconomyOct 12, 2021 12:04
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- The Labor Department's monthly look at job vacancies will cast light on the tension between record openings and weak job creation. The Treasury will auction 10-year notes against a backdrop of rising inflation fears. China's car sales slumped in September and the Bank of England gets more reasons to raise interest rates. Stocks are inching lower in the calm before the third-quarter earnings storm and the U.S. updates on its estimates for supply and demand in world agricultural markets. Here's what you need to know in financial markets on Tuesday, 12th October.

1. JOLTs survey and Fed speakers

Fresh data will shed light on the puzzle that is the U.S. labour market, with the Labor Department’s monthly Job Openings and Labor Turnover survey (JOLTs) for August.

Vacancies are expected to have dipped after surging to nearly 11 million earlier in the spring and summer, but the sectoral and geographical breakdown will likely shed light on why the economy only ended up adding 194,000 jobs last month, its weakest performance so far this year.

There’s also the monthly outlook from Redbook Research, as well as speeches by Federal Reserve vice-chairman Richard Clarida at 11:15 AM ET and Atlanta Fed President Raphael Bostic at 12:30 PM.

2. China car sales slump; real estate contagion spreads

New data showed Chinese car sales slumping 17% on the year in September, their worst decline in a year. For the third quarter as a whole, they were down 13% from a year earlier.

Elsewhere in China,  a growing number of real estate developers are starting to hit the wall, missing interest and principal payments either partly or in full as the problems of China Evergrande (OTC:EGRNY) make it harder for them to refinance.

In addition to Evergrande and Fantasia, Sinic has said it won’t meet a combined interest and payment deadline by Oct. 18, while Xinyuan said it can only repay 5% of its notes due on Friday. Modern Land, meanwhile, has asked for a three-month extension on debts falling due before the end of the month. Yields as measured by Bloomberg’s China junk bond index surged to a fresh high of just under 18%.

3. Stocks inch lower; Treasury 10-year note sale eyed

U.S. stock markets are set to extend their poor start to the week, a day before JPMorgan (NYSE:JPM) informally opens a third-quarter earnings season that may substantiate fears of earnings growth having peaked for the present.

By 6:20 AM ET (1020 GMT), Dow Jones futures were down 56 points, or 0.2%, while S&P 500 futures were down 0.1% and Nasdaq 100 futures were up less than 0.1%.

There will be a fresh test of sentiment in the bond market at 1 PM ET with the auction of 10-year Treasury notes, the first bond sales since lawmakers declared a temporary truce in the war over the debt ceiling.

Stocks likely to be in focus later include Chevron (NYSE:CVX), which posted some details about its ‘ambition’ to reach net zero carbon emissions late on Monday, and construction supplies group Fastenal (NASDAQ:FAST), which reports quarterly earnings. 

4. Clouds on German horizon; wages, jobs surge in U.K.

Europe’s economy continues to throw out mixed signals: Germany’s ZEW index, the first of the big sentiment indices to be published each month, fell to its lowest since February 2020 in September, with a larger-than-expected drop to 22.3 from 26.5 in August. That follows the triple whammy from Europe’s largest economy last week, which included falling orders, output and exports.

The U.K. meanwhile issued a thoroughly decent set of labour market statistics, employment rising by 235,000 in the three months through August to stand above its pre-pandemic level for the first time.

Average earnings excluding bonuses rose 6.0%. Although the Office for National Statistics said they are distorted by base effects, they still illustrate the pressures referred to by Bank of England officials who now seem set to raise interest rates before the end of the year.

5. Oil consolidates near highs; WASDE report due

Crude oil prices consolidated close to seven-year highs overnight, with no sign of the energy crisis in China and Europe relenting, and plenty of demand for liquid fuels coming from the reopening of economies across southeast Asia and Australasia in particular. China said it will allow some wholesale electricity prices to rise again to balance supply and demand, while India lifted restrictions on airlines' flying capacity.

By 6:30 AM ET, U.S. crude futures were down less than 0.1% at $80.47 a barrel, while Brent futures were down by a similar amount at $83.56 a barrel.

The day’s highlight for commodity traders comes at 12 PM with the publication of the World Agricultural Supply and Demand Estimates report from the U.S. government. That comes as Cotton Futures hit 10-year highs.

JOLTs, Treasury Auctions, China Car Slump - What's Moving Markets
 

Related Articles

Dollar, shares rise as Omicron fears subside
Dollar, shares rise as Omicron fears subside By Reuters - Dec 02, 2021 3

By Herbert Lash NEW YORK (Reuters) - A gauge of global equities surged on Thursday as Wall Street rallied on hopes the Omicron COVID-19 variant will prove mild and will not halt a...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Kasali Sulaimon
Kasali Sulaimon Oct 12, 2021 13:43
Saved. See Saved Items.
This comment has already been saved in your Saved Items
samuel adesola
samuel adesola Oct 12, 2021 13:43
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hello
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email