Tech Rally Rolls On as Oil Nears $100 Amid Ongoing Tensions
The tech rally continues to gain momentum, while oil prices near the crucial $100 mark. Asian bourses kick off the week strongly, with South Korea's KOSPI up 4% and Japan's Nikkei 225 up 2%. The catalyst behind this surge appears to be growing excitement about OpenAI's next-generation model.
US payrolls data for August showed a significant increase of 162,000 jobs, beating all estimates. Unemployment remained at 4.1%, while the labour force participation rate jumped to 61.6% from 61.4%. This solid performance triggered a flattening of the yield curve and supported the US dollar.
Looking ahead, the ECB's rate decision on Thursday is expected to raise its key benchmark rates by 25bps. Market pricing suggests a second rate increase this year, with some desks pricing in a possible third hike at December's meeting. The question remains whether the central bank signals another down the road.