Quits continuing to point to lower US labour cost growth ahead. (EvercoreISI chart)

Mixed US jobs data Aug ADP employment survey soft at +99k (but often not a reliable guide to payrolls But initial jobless claims -5k, continuing claims -22k (but Puerto Rico was -12k and looks prone to reversal) (EvercoreISI charts)

US Aug services ISM +0.1pt to a subdued 51.5 with new orders +0.6pts to 53 but employment -0.9pts to a subdued 50.2. Prices paid +0.3 to 57.3, but well down from highs. Overall the services ISM is consistent with modest growth and leans to a 0.25% Fed cut. (Bloomberg charts)

Eurozone shares -0.7% US shares -0.3%, Nasdaq +0.25% US 10 yr yld -3bp to 3.73% Oil -0.4% to $69.1 Gold +0.8% to $2515.2 Iron ore -0.6% to $92.4 ASX futures +0.1% $A 0.6738 with $US index -0.2%

such a laid back country

Aust housing finance commitments up again in July.

US Aug payrolls +142k, <exp with prior 2 mths -86k. But unemp fell to 4.2%. Wages grth +0.4%m/3.8%y. The overall picture is soft but maybe not weak enuf to bring on a 0.5% Fed cut,versus 0.25%. Feds Waller & Williams both support a cut. Mkt has 70% prob of 0.5% EvercoreISI charts

Eurozone shares -1.6% (-4.4% wk) US shares -1.7% (-4.2% wk) after weak payrolls & concern Fed wont ease quickly enough US 10 yr yld -1bp to 3.72% Oil -1.1% to $68.1 Gold -0.8% to $2495.6 Iron ore -0.5% to $90.8 ASX futures -1.4% $A 0.6668 w $US +0.1% (Bloomberg chart)

The correction in shares looks to be resuming with a high risk of more near term falls given: stretched valuations; too optimistic sentiment; tech/AI boom unwinding; high recession risk; high geopolitical risk in mid East & US election;& poor seasonality in Sept. Bloomberg charts

The resumption of Yen strength (shown inversely in the Bloomberg chart) suggests the unwinding of Yen carry trades may be resuming. (Bloomberg charts)

Prelim Domain auction clearances Syd 68%=final ~67%,Sep norm 66% Mel 65%=final~62%,Sep norm 67% Clearances up a bit. Syd is around average levels but Mel remains soft. Rising listings and the still hawkish RBA remain drags along with likely higher unemployment ahead. #ausecon

Eurozone shares +0.9% US shares +1.2%, Nasdaq +1.2% US 10 yr yld -2bp to 3.70% Oil +0.8% to $68.6 Gold +0.4% to $2505.6 Iron ore +2% to $92.6 ASX futures +1% $A 0.666 with $US index +0.3%

Aust August NAB survey showed weaker confidence & a continuing downtrend in conditions. New orders are falling & the survey points to slower jobs grth ahead. Cost & price components remain in a downtrend, albeit still elevated, with labour costs falling after the wage case boost

Aust Sept Westpac/MI consumer confidence -0.5% to 84.6. Consumer confidence is in a gradual rising trend but remains very weak & suggests the tax cuts have not provided a big boost. A sharp rise in unemployment expectations points to higher unemployment ahead.

The Westpac/MI consumer survey showed a slight pull pack in caution regarding the use of savings but home price growth expectations have a slowed a bit and consumers continue to regard now as a poor time to buy a dwelling.

Chinese export growth remained solid in August at +8.7%yoy, but import growth slowed to just +0.5%yoy consistent with weak domestic demand growth. (Goldman Sachs chart)

US Aug small business optimism remains weak with weak expansion plans and less firms raising selling prices. (EvercoreISI chart)

Eurozone shares +0.7% US shares +0.45%, Nasdaq +0.8% US 10 yr yld -6bp to 3.64% Oil -3.5% to $66.28 Gold +0.4% to $2516.7 Iron ore -1.1% to $91.6 ASX futures +0.05% $A 0.6652 with $US index flat