World Stock Markets Mixed; Potential Central Bank Moves Remain In Focus

Singapore (Oct 5)  Asian and European stock markets were mixed Wednesday. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins.

There is ongoing speculation among traders and investors regarding when the U.S. Federal Reserve will raise interest rates. This on-again, off-again rate-hike talk was in the on-again mode Tuesday, following some hawkish comments from a Federal Reserve official. There was also a report Tuesday that the European Central Bank may start to taper its bond-buying program down the road. This conjecture in the marketplace was bearish for stock markets and for gold. Gold prices hit a 3.5-month low Tuesday.

In overnight news, the Euro zone Markit composite purchasing managers' index
 (PMI) dropped to 52.6 in September from 52.9 in August. The September reading was a 20-month low. A number above 50.0 indicates expansion in the sector. Euro zone retail sales in August were reported down 0.1%, month-on-month and up 0.6%, year-on-year.

Poland's central bank kept its interest rates unchanged Wednesday, following its regular monetary policy meeting.

The British pound hit another 31-year low against the U.S. dollar on Wednesday. The pound has been hit just recently by news that the U.K. will pull away from the European Union in a more aggressive fashion than many had expected.

Traders and investors are starting to look ahead to Friday's U.S. jobs report, which is arguably the most important report of the month. The key non-farm payrolls number is expected to be up by 170,000 in September.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, the international trade report, the U.S. services PMI, the global services PMI, manufacturers' shipments and inventories, the ISM non-manufacturing index, and the weekly DOE liquid energy stocks report.

Source: KitcoNews