US ADP private sector payrolls came in well below expectations (99K vs street 145K, previous revised downward by 11K to 111K), increasing fears that the economy is slowing which could impact resource demand and corporate earnings, but also potentially increasing pressure on the Fed to deliver a rate cut of at least 0.25% at its next decision on September 18th. The Bank of Canada announced another 0.25% interest rate cut yesterday as was expected
Volatility in US index futures has increased following the ADP announcement with a big drop followed by a big bounce. Currently, US index futures are trading 0.1% to 0.7% this morning. European trading is mixed with the Dax up 0.1%, the FTSE down 0.2%, and the CAC down 0.7%. Commodities, however, are climbing with US Crude Oil up 0.9% and Copper up 0.8%. Gold is up 0.9% while Bitcoin is down 2.4% indicating that traders in currencies continue to back away from risk markets.
Other data from the US has been mixed as Construction Spending disappointed but Factory Orders beat expectations. Tomorrow brings US Nonfarm Payrolls (street 160K) and Average Hourly Earnings (street 3.7%), along with Canada employment (street 26K) and Average Hourly Wages (previous 5.2%). US ISM Service PMI (street 51.1) is due at 10:00 am EDT.