Traders See 33% Chance Of A Super-Sized U.S. Rate Cut

The big event of the week is likely to be the US non-farm payrolls report on Friday, which is expected to show that the world’s largest economy added 165,000 jobs in August, up from 114,000 in July, The Telegraph reported.

Traders currently believe a September Federal Reserve rate cut is certain and see a 33% chance that it could be a super-sized half a percentage point reduction

Traders currently believe a September Federal Reserve rate cut is certain and see a 33% chance that it could be a super-sized half a percentage point reduction, though that could change on Friday.

The weak July jobs report helped spark a sell-off in global stocks at the start of August, although the S&P 500 has since rebounded to sit 0.4% off a record high.

In Europe, the Stoxx 600 index, which includes some of Britain’s biggest companies, fell 0.2% after hitting a record high on Friday.

Germany’s DAX is flat, while the FTSE 100 is down 0.2%. Aneeka Gupta, equity strategist at WisdomTree, said, “European equities have opened on a weaker footing owing to weaker economic data from China. The industrials and consumer discretionary sectors led the declines.”