The number of new jobs created by US companies in August was less than expected, reflecting stubborn recruitment challenges and a slowdown in the labor market recovery. According to data released by the ADP Research Institute on Wednesday, the number of American companies employed increased by 374,000 last month, which was lower than the estimates of all economists surveyed by Bloomberg. The revised data in July was an increase of 326,000.

The US manufacturing sector expanded faster than expected in August, reflecting both the acceleration of orders and output growth and the rising backlog of orders. Data released on Wednesday showed that the Institute of Supply Management (ISM) manufacturing index rose to 59.9 from 59.5 in the previous month. The index higher than 50 represents activity expansion. Although the ISM order index has reached the highest level in three months, and the increase in the production index has highlighted continued demand, the increase in backlog orders also shows that the supply bottleneck problem that plagues global manufacturers has not yet been eliminated.

After a short video conference, OPEC+ agreed to abide by the existing monthly schedule of gradual increase in production. The delegates said that the ministers agreed to continue to increase the monthly output of 400,000 barrels per day. The video conference lasted less than an hour and was one of the shortest meetings in memory in recent memory, in sharp contrast to the difficult negotiations in July. Although the current situation may be beneficial to OPEC, there are still uncertainties in the near term. Even if demand recovers, the emergence of mutant strains of the new crown will affect oil demand. In addition, it is still unknown whether Iran and the United States can reach an agreement on lifting sanctions on Iran’s oil exports. At present, it is unlikely that the sanctions will be lifted.

On Wednesday, the Fed's overnight use of reverse repurchase tools fell the most since August 2. The use of overnight reverse repurchase tools by 72 participants totaled US$1.084 trillion, which was approximately US$106 billion lower than the historical high of US$1.19 trillion set on August 31.

German Central Bank President Jens Weidmann said that ECB officials should not ignore the risk that inflation may rise faster than currently expected. Before the ECB policy meeting next week, Weidmann also joined the increasingly heated debate. According to the speech, Weidmann said at a press conference on Wednesday: “We must pay attention to the risks to the price outlook. In my opinion, upside risks dominate”. He said, "Easy monetary policy still applies. But we should not ignore the risk of excessive inflation."

People familiar with the matter said that US antitrust officials are preparing to file a second antitrust lawsuit against Alphabet Inc.'s Google over digital advertising business, increasing allegations of Google's abuse of its dominant position. People familiar with the matter who requested anonymity because the investigation is still in progress said that the US Department of Justice has accelerated its investigation into Google's digital advertising business and may file a lawsuit as early as the end of this year. There is no final decision yet, and the time may be postponed.

According to people familiar with the matter, the European Central Bank is increasing pressure on banks, asking them to prepare for next year's stress test, which will show how vulnerable the banking industry is to climate change. According to sources, the European Central Bank expressed dissatisfaction with the financial industry's efforts to address climate risks earlier this year.

Risk Warning: The above content is for reference only, and does not represent JRFX’s position. JRFX does not assume any form of loss caused by any trading carried out in accordance with this article. Please consult your financial planner for your investment portfolios and manage your own risk.

JRFX is an online CFD broker providing more than 50 products for Forex, metals and commodities. Open a trading account within a minute. Deposit 100USD and download our MT4 trading platform now!