All Eyes On August Payrolls, As Global Stocks Rise In Bullish September Start; Yuan Surge Continues

With payrolls looming (our full preview is here), carbon-based traders around the globe are leery of putting on any major trades and so the overnight session has been rather dull, dominated by the now traditional overnight algo-mediated levitation, which means the VIX is lower and S&P futures are once again modest higher as European and Asian shares continue their ascent.
‘A decent payrolls number today would be the icing on the cake in a week that has seen some positive signs that the U. S. economy may be in better shape than was previously thought prior to Jackson Hole,’ analyst Michael Hewson at CMC Markets writes in note. ‘Annual hourly wage growth is currently 2.5%, a little on the weak side for an economy supposedly at full employment, so a strong number here could increase the odds of another rate rise this year, most likely in December.’
While we have penned a longer preview of today’s jobs report, the only chart that may matter for today’s payrolls print, expected at 180K, is the following from Morgan Stanley, which predicted the July print to the dot, and which anticipates a big miss in the August jobs number, at 136K vs the 180K expected (see full preview here).

This post was published at Zero Hedge on Sep 1, 2017.