➤ China injects liquidity into its financial system.
➤ Fitch downgrades Hong Kong amid political crisis.
➤ Sterling under pressure as UK PM seeks to revive snap election bid.
Global stocks were largely up and U.S. bonds fell as China injected liquidity into its financial system and markets awaited the U.S. jobs report and a speech from Federal Reserve Chairman Jerome Powell.
Following better-than-expected private-sector jobs data, nonfarm payrolls for August are estimated to come in at 163,000 while annual wage growth is seen ticking down to 3.1% from 3.2%.
A firmer print would lower the odds of a 50-basis-point cut from the Fed this month and price out the cuts penciled in for the rest of the year, while a weaker reading could result in a bigger rate cut, analysts at TD Securities said in a note.
The Fed is widely expected to ease policy again Sept. 18 against a backdrop of unresolved trade tensions.
Futures for the S&P 500 and Nasdaq 100 rose before the jobs report, which will be followed by Powell's speech about the economic outlook and monetary policy. European equities were mixed around 6:30 a.m. ET, with the FTSE 100 down 0.1% and Germany's DAX up 0.3%. France's CAC 40 was little changed.
The People's Bank of China moved to cut the reserve requirement ratio for all banks by 0.5 percentage point to boost tapering economic growth. The announcement was made after Asian markets had closed.
The Shanghai SE Composite and Japan's Nikkei 225 rose 0.5% each, while Hong Kong's Hang Seng advanced 0.7%. Fitch Ratings downgraded Hong Kong's long-term ratings, with a negative outlook, as it forecast the semi-autonomous territory's real GDP growth to stall this year amid monthslong protests.
The euro was down 0.1% versus the dollar after Germany reported an unexpected decline in July industrial production amid a slump in factory orders. Meanwhile, Eurozone's GDP growth was confirmed at 0.2% quarter over quarter, while annual GDP growth was revised upward to 1.2% in the second quarter.
Sterling was down 0.3% against the U.S. currency. The U.K. government will put forward a new motion for Sept. 9 seeking an early general election ahead of the Oct. 31 Brexit date after Prime Minister Boris Johnson failed in his bid to trigger a snap poll. Meanwhile, London’s High Court rejected a legal challenge against Johnson's decision to suspend Parliament.
The Japanese yen slipped 0.1%, while the Dollar Index inched up 0.1%.
Yields on 10-year Treasurys added 2 basis points to 1.581%, while those on German Bunds with equal maturity declined 2 basis points.
Brent crude oil slipped 0.8% to $60.45 per barrel on the ICE Futures Exchange. Iran reportedly withdrew from more commitments under the 2015 nuclear pact, putting Europe under further pressure to extend economic benefits to the Islamic republic.
Gold fell 0.6% to $1,515.90 per ounce.
More from S&P Global Market Intelligence:
The bull case: Resilient US consumers are buffer against recession
The bear case: Trade 'Cold War' makes recession more likely
Margins fall, asset quality improves at China's largest banks in Q2
East Coast banks buckle up for hurricane season as Dorian hits Carolinas
2 major hoteliers move to trash tiny shampoo bottles
The day ahead:
8:30 a.m. ET — U.S. employment situation
8:30 a.m. ET — Canada labor force survey (Econoday consensus: 5.7% unemployment)
10 a.m. ET — Canada Ivey purchasing managers' index
10 a.m. ET — U.S. quarterly services survey
12:30 p.m. ET — Fed's Jerome Powell speaks
1 p.m. ET — U.S. Baker-Hughes rig count
