ANKARA - After a tumultuous week and massive losses in September, the global markets await the US job reports next week as they may shape the US Federal Reserve's monetary policies in the coming months. Increasing inflation pressures on world economies, rising energy prices, uncertainties in Asia amid Chinese real estate developer Evergrande, and the Fed signaling to begin tapering -- the process of scaling back its $120 billion worth of monthly bond purchases -- have recently created high volatility in global markets. US stock markets ended September with their worst monthly loss of 2021 so far. While the Dow Jones fell 4.3 percent last month, the S&P 500 declined 4.8 percent for its largest drop since March 2020. The Nasdaq plummeted 5.3 percent -- its worst September in a decade. European indices also had massive losses, with the STOXX index plummeting 3.8 percent, while Germany's DAX 30 and France's CAC 40 losing around 3.4 percent each, according to data compiled by Anadolu Agency. Energy prices soar There has been a lot of uncertainty about when central banks of major economies would raise interest rates amid rising inflation and energy prices. Still, the high level of unemployment and weak labor market conditions continue to be significant obstacles. Oil prices have recently climbed to their highest level in three years as the international benchmark Brent crude price hit $80.75 per barrel on Tuesday -- its highest level since October 2018. The Organization of the Petroleum Exporting Countries (OPEC) will hold its ministerial meeting on Monday. The global oil market expects the group to discuss increasing oil production to meet the post-pandemic period's surging demand caused by normalization. Natural gas prices in Europe hit a fresh record of 100 euros ($116) this week, posing a risk against economic recovery and heating before the winter season. On the labor market front, Euro area unemployment stood at 7.5 percent in August 2021, with EU unemployment at 6.8 percent, according to Eurostat, the statistical office of the EU. The unemployment rate in the US stood at 5.2 percent in August after the world's largest economy could only add 235,000 jobs that month, according to the latest figures of the US Labor Department. Job openings in the US, on the other hand, hit a new record of 10.9 million in July, suggesting that there is an uneven recovery from the coronavirus pandemic in the US economy. US private payrolls for September will be announced on Wednesday at 8:15 a.m. EDT (1215 GMT), which is expected to come at 430,000 --higher than 374,000 in August if realized. Nonfarm payrolls for September will be released on Friday at 8:30 a.m. EDT (1215 GMT). The jobs data that the Fed watches very closely is estimated to come at 460,000, after posting a weak increase of only 235,000 in August. Timeline of Fed tapering The US central bank is awaiting a solid gain in jobs report to begin its tapering process, which could either start by November or December latest. Fed Chair Jerome Powell said last week tapering might conclude by mid-2022, which gives the bank around eight months to end its $120 billion monthly asset purchases if it cuts them by $15 billion each month. The central bank also signaled on September 22 after its two-day meeting that it projects the first rate hike to come in 2022 and expects to make four more interest rate increases in 2023, instead of its earlier estimate of two made on June 16. Those expectations have pushed the US dollar index, which includes a basket of currencies like the euro, the Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, to climb as high as 94.50 on September 30 -- its highest level since September 2020. The yield on 10-year US Treasury notes also hit 1.567 percent on September 28, marking its highest level since June 6 this year. The VIX (volatility index), known as the fear index, climbed above the critical level of 20 after jumping 24 percent in a single session on Tuesday. High inflation to persist Inflation is expected to remain high around the world throughout the first half of 2022, at least until labor markets show some sign of recovery. The European Central Bank (ECB) and the US Federal Reserve are awaiting improvement in employment data before raising interest rates that could come at the end of 2022 by the earliest, given the current weak labor market conditions. ECB President Christine Lagarde said on September 16 that she expects the eurozone economy to recover quicker than expected from the coronavirus pandemic amid fast vaccination. Lagarde said Wednesday energy prices are expected to decline in the first half of 2022. However, Powell said production bottlenecks and supply chain problems would continue next year, holding up inflation longer than earlier estimates. He also hinted that the Fed may raise interest rates to bring inflation under control if prices increase to unsustainable levels. Powell added he hopes the central bank would not need to balance inflation and rate hikes, which he referred to as "the difficult trade-off of having the two goals in tension." (Anadolu) }
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Germany , Japan , United Kingdom , China , Sweden , Ankara , Turkey , Canada , Anadolu , Turkey General , Switzerland , France , Canadian , Swedish , Chinese , Japanese , British , Swiss , Jerome Powell , Christine Lagarde , Dow Jones , Us Labor Department , European Central Bank , Organization Of The Petroleum Exporting Countries , Nasdaq , Anadolu Agency , Petroleum Exporting Countries , Chair Jerome Powell , Ankara Aftera Tumultuous Week And Massive Losses In September , He Global Markets Await The Us Job Reports Next Week As They May Shape Federal Reserve 39s Monetary Policies In Coming Months Increasing Inflation Pressures On World Economies , Rising Energy Prices , Ncertainties In Asia Amid Chinese Real Estate Developer Evergrande , Nd The Fed Signaling To Begin Tapering Process Of Scaling Back Its 120 Billion Worth Monthly Bond Purchases Have Recently Created High Volatility In Global Markets Us Stock Ended September With Their Worst Loss 2021 So Far While Dow Jones Fell 4 3 Percent Last Month , Hes Ampp 500 Declined 4 8 Percent For Its Largest Drop Since March 2020 The Nasdaq Plummeted 5 3 Worst September Ina Decade European Indices Also Had Massive Losses , Ith The Stoxx Index Plummeting 3 8 Percent , Hile Germany 39s Dax 30 And France Cac 40 Losing Around 3 4 Percent Each , Ccording To Data Compiled By Anadolu Agency Energy Prices Soar There Has Beena Lot Of Uncertainty About When Central Banks Major Economies Would Raise Interest Rates Amid Rising Inflation And Still , He High Level Of Unemployment And Weak Labor Market Conditions Continue To Be Significant Obstacles Oil Prices Have Recently Climbed Their Highest In Three Years As The International Benchmark Brent Crude Price Hit 80 75 Per Barrel On Tuesday Its Since October 2018 Organization Petroleum Exporting Countries Opec Will Hold Ministerial Meeting Monday Global Expects Group Discuss Increasing Production Meet Post Pandemic Period 39s Surging Demand Caused By Normalization Natural Gas Europe Hita Fresh Record 100 Euros 116 This Week , Osinga Risk Against Economic Recovery And Heating Before The Winter Season On Labor Market Front , Uro Area Unemployment Stood At 7 5 Percent In August 2021 , Ith Eu Unemployment At 6 8 Percent , According To Eurostat , He Statistical Office Of The Eu Unemployment Rate In Us Stood At 5 2 Percent August After World 39s Largest Economy Could Only Add 235 , 000 Jobs That Month , Ccording To The Latest Figures Of Us Labor Department Job Openings In , N The Other Hand , Ita New Record Of 10 9 Million In July , Uggesting That There Is An Uneven Recovery From The Coronavirus Pandemic In Us Economy Private Payrolls For September Will Be Announced On Wednesday At 8 15am Edt 1215 Gmt , Hich Is Expected To Come At 430 , 000 Higher Than 374 , 000 In August If Realized Nonfarm Payrolls For September Will Be Released On Friday At 8 30am Edt 1215 Gmt The Jobs Data That Fed Watches Very Closely Is Estimated To Come 460 , 000 , Fter Postinga Weak Increase Of Only 235 , 000 In August Timeline Of Fed Tapering The Us Central Bank Is Awaitinga Solid Gain Jobs Report To Begin Its Process , Hich Could Either Start By November Or December Latest Fed Chair Jerome Powell Said Last Week Tapering Might Conclude Mid 2022 , Hich Gives The Bank Around Eight Months To End Its 120 Billion Monthly Asset Purchases If It Cuts Them By 15 Each Month Central Also Signaled On September 22 After Two Day Meeting That Projects First Rate Hike Come In 2022 And Expects Make Four More Interest Increases 2023 , Nstead Of Its Earlier Estimate Two Made On June 16 Those Expectations Have Pushed The Us Dollar Index , Hich Includesa Basket Of Currencies Like The Euro , The Japanese Yen , British Pound , Canadian Dollar , Wedish Krona And Swiss Franc , O Climb As High 94 50 On September 30 Its Highest Level Since 2020 The Yield 10 Year Us Treasury Notes Also Hit 1 567 Percent 28 , Arking Its Highest Level Since June 6 This Year The Vix Volatility Index , Nown As The Fear Index , Limbed Above The Critical Level Of 20 After Jumping 24 Percent Ina Single Session On Tuesday High Inflation To Persist Is Expected Remain Around World Throughout First Half 2022 , T Least Until Labor Markets Show Some Sign Of Recovery The European Central Bank Ecb And Us Federal Reserve Are Awaiting Improvement In Employment Data Before Raising Interest Rates That Could Come At End 2022 By Earliest , Iven The Current Weak Labor Market Conditions Ecb President Christine Lagarde Said On September 16 That She Expects Eurozone Economy To Recover Quicker Than Expected From Coronavirus Pandemic Amid Fast Vaccination Wednesday Energy Prices Are Decline In First Half Of 2022 However , Owell Said Production Bottlenecks And Supply Chain Problems Would Continue Next Year , Olding Up Inflation Longer Than Earlier Estimates He Also Hinted That The Fed May Raise Interest Rates To Bring Under Control If Prices Increase Unsustainable Levels Powell Added Hopes Central Bank Would Not Need Balance And Rate Hikes , Hich He Referred To As Quot The Difficult Trade Off Of Having Two Goals In Tension Anadolu ,
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