Goldman Sachs has cut its 2021 China growth forecast
Wall Street stocks finished mostly higher on Friday after the report showed the U.S. job market improving. Headline NFPs for July came in at 943,000 and topped the consensus forecast of 870,000. Furthermore, the unemployment rate came in at 5.4%, which was better than the 5.7% figure expected by markets. As a result, the S&P 500 index climbed 0.17%, the Dow Jones climbed 0.41% and the Nasdaq fell 0.40%.\
Asian stock markets were mixed on Monday, with the Shanghai Composite Index adding 1.05% and Hong Kong’s Hang Seng gaining 0.40%. Investors cheered the news that China and Australia tightened anti-virus controls that threaten to weigh on economic recovery. Meanwhile, the Kospi shed 0.30%. On the negative side, Goldman Sachs has cut its 2021 China growth forecast, citing the fast spread of the delta variant of the coronavirus.
In Europe, equities opened little changed, with shares in Germany and France climbing marginally. U.S. stock futures were slightly lower in early premarket trading. Now, investors are awaiting key U.S. inflation data scheduled for release this week.
Meanwhile, the dollar remains elevated following a rally witnessed on Friday amid a stronger-than-expected job market report. EURUSD plunged to four-month lows around 1.1740 before reversing in recent trading. The pair climbed back to the flat-tine, lacking the recovery momentum. On the data front, Eurozone’s investor sentiment dropped to 22.2 in August from 29.8 in July versus a reading of 29.0 expected.
