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Many believe that today’s non-farm payroll figures will rubber stamp the Federal Reserve’s plans to start tapering its quantitative easing process, and that only an outrageously poor number could derail this. After a slight improvement in yesterday’s US unemployment claims, a low number seems highly unlikely.
The US debt market has seen ten-year US treasuries break through the 3% level, almost doubling in the last five months. This move by bond traders shows that they have almost fully factored in a ‘beginning of the end’ as far as asset purchasing is concerned.
The other key figure due out before the start of today’s US equity trading is the unemployment level, which is currently at 7.4% and not expected to change.
Yesterday saw the start of the latest G20 conference and, having being marginalised at the G7 in June, Russian president Vladimir Putin has taken full advantage of the support of the Brics nations on his home turf and set the agenda. China has been the most vocal supporter of Russia’s determination to prevent military action in Syria, though it is more likely to be the possibility of soaring oil prices rather than the humanitarian issues that are guiding their thoughts.