The latest U.S. non-farms payroll was released on Friday and showed that employers added a net 661,000 jobs in September. This is far above longer term averages but is less than half the number added in August, which again reveals the esoteric nature of data releases at this time. Under the surface, much of the slowing pace was attributed to seasonal government hiring, and the unemployment rates moved down to 7.9%. Whilst this is a headline positive figure it was more a result of less people looking for work, rather than as a result of more people finding work.

In other data, U.S. personal incomes declined in August, as the effect of lower unemployment benefits began to be felt. In a slight contradiction spending actually rose 1.0% in August and services PMI continued to expand. Chinese data once again pointed to a strong recovery in the world’s second largest economy. Both manufacturing and services PMIs beat consensus estimates, with the services in particular noteworthy – rising to 55.9 vs a forecasted decline.

Within U.S. politics markets are continuing to closely watch developments regarding stimulus negotiations. On Thursday evening Democrats passed a $2.2tn aid package in the House, although it is unlikely to make it through the Republican controlled Senate. Talks will continue, with both President Trump and Treasury Secretary Mnuchin making positive comments in recent days.

Closer to home, Brexit negotiations continued with Boris Johnson and European Commission President Ursula von der Leyen holding talk on Saturday. With virus cases within both the EU & U.K. on the rise, softening the economic impact of Brexit takes on fresh impetus. President von der Leyen is also now self-isolating following a close contact last week. CLCIK HERE