G20 Meeting and Central Bank Decisions Dominate Market Attention
The G20 meeting and several central bank decisions are dominating market attention this week. The event in Asheville, North Carolina, will bring together world leaders, including Bank of Japan Governor Kazuo Ueda, who was absent from Jackson Hole.
The Fed and BOJ September meetings are key risk events, while Middle East tensions remain a focus. France is facing budget negotiations, and Germany's regional elections may test Chancellor Friedrich Merz's position. Investors are looking ahead to the UK budget and US midterm elections.
Another source of potential volatility comes from the U.S. Treasury market, where traders may challenge Treasury Secretary Scott Bessent's resolve on limiting borrowing costs. The 'dollar debasement' talk has gained pace recently, with investors pricing in concerns about a $40-trillion debt pile and policy uncertainty.
The US jobs report is due Friday, expected to show employment climbed by 45,000 jobs in August, according to a Reuters poll. This follows last month's unexpected 23,000 job fall. The weak July report did calm market worries about interest rate hikes.