I Picked a Hell Of a Week To Go To Europe

+  Intro: Investors will be watching for the latest developments out of China after the historic volatile week we had last week. Traders will also be turning their attention to the Nonfarm Payrolls and Unemployment Rate leading up to the holiday weekend

+  Volatility: Last week, the market witnessed very extreme swings which saw the Dow drop 1,000 points in early trading on Monday (8/24). This was likely the result of a mini flash crash as certain ETF’s opened up 20 and 30% lower after China fell overnight 9%. On Tuesday (8/25), we witnessed the highest intraday change in recent memory (I believe by points, the highest ever). By the end of the week the markets recovered and ended up positive. Traders will watch to see if we have any more extreme days after last week’s roller coaster. The VIX closed last week down by 7% after spiking to as high as 90% earlier in the trade week       

+  Non-Farm Payrolls & Unemployment Rate: On Friday (8/7), Non-Farm Payrolls and the Unemployment Rate are released. This will be the last Payrolls report the FED will see before their announcement (9/16). Traders will be looking to the results to help determine if they think  whether we will see a rate hike later this year

+  China: Also Last week, the Chinese markets fell 9% in one day after reporting weak industrial data. During the week, China’s central bank took additional steps to prop up their economy including an interest rate cut and lowering the amount reserve banks must hold. Traders will be watching for any additional signals out of Beijing to help prop their slowing economy

+  Oil: Oil continued to drop last week hitting its lowest level since March 2009 on the economic outlook in China. On Monday (8/24), WTI crude dropped below $38. Traders will watch to see if oil has reached a bottom or if it will continue to fall

+  ECB: On Wednesday, 9/2 the ECB has a press conference. Traders will be listening to Mario Draghi as to the latest updates of the ECB’s bond buying program and if they have altered their inflation outlook at all. Any additional accommodations by the ECB has the possibility of seeinga reaction in the markets including a weakening of the Euro  

+  Summer Slowdown: The week before Labor Day weekend is traditionally a very slow week, similar to the week between Christmas and New Years. Skeleton crews are working on the trading desks. So any macro news hitting the markets has the potential for volatility due to low liquidity if news was to hit a certain sector

 

MONDAY (8/31)

  • 9:30 AM ET – Chicago PMI – Aug -
  • UK banks will be closed in observance of the Summer Bank Holiday

 

TUESDAY (9/1)

  • 10:00 AM ET - ISM Index - Aug
  • 10:00 AM ET - Construction Spending - Jul
  • 5:00 PM ET - Auto Sales - Aug
  • China Manufacturing PMI
  • Australia Building Approvals
  • Caixin Final Manufacturing PMI
  • Reserve Bank of Australia Rate Statement
  • Great Britain Manufacturing PMI
  • Canada GDP

 

WEDNESDAY (9/2)

  • 8:15 AM ET – ADP Employment Change - Aug
  • 8:30 AM ET - Productivity - 2Q
  • 10:00 AM ET – Factory Orders – Jul
  • 10:30AM ET – Crude Oil Inventories
  • 2:00 PM ET – Fed’s Beige Book – Aug
  • Australia GDP
  • Great Britain Construction PMI
  • Earnings: Costco

 

THURSDAY (9/3)

  • 7:30 AM ET - Challenger Job Cuts - Aug
  • 8:30 AM ET - Weekly Jobless Claims
  • 8:30 AM ET - Trade Balance - Jul
  • 10:00 AM ET – ISM Services - Aug
  • Australia Retail Sales & Trade Balance
  • Great Britain Services PMI
  • ECB Minimum Bid Rate
  • ECB Press Conference
  • Earnings: Medtronic

 

FRIDAY (9/4)

  • 8:30 AM ET - Nonfarm Payrolls - Aug
  • 8:30 AM ET - Unemployment Rate - Aug
  • 8:30 AM ET – Hourly Earnings - Aug
  • FOMC Member Jeffrey Lacker Speaks
  • Canada Ivey PMI
  • G20 Meetings