Markets Brace for Key Economic Data Amid Global Liquidity Crunch

With holidays in the U.S. and Canada impacting liquidity, global markets brace for a wave of economic data, including U.S. payrolls. Asian August PMIs show mixed results, with China's Caixin beating forecasts but showing export order declines. Investors closely watch Fed's rate decisions and upcoming economic releases.

Global markets are preparing for a crucial week of economic data, complicated by a liquidity crunch due to holidays in the U.S. and Canada. Key figures to watch include U.S. payrolls, which are expected to guide the Federal Reserve's next move on interest rates.

Asian markets presented a mixed bag in August, with China's Caixin PMI exceeding expectations but experiencing a drop in new export orders for the first time in eight months. Japan's PMI also showed improvement, with business investment gaining momentum in Q2. However, Chinese stocks dipped, primarily due to losses in the real estate sector.

Investors are closely monitoring the Federal Reserve's potential rate cut in September. Market predictions point to a likely 25 basis points decrease, though this could change depending on upcoming payroll data and other key economic indicators such as the ISM surveys and the Fed's Beige Book. The euro and the dollar are under pressure due to political uncertainties and economic forecasts.

(With inputs from agencies.)