Global Markets Brace for Data-Driven Week Amid Political and Economic Uncertainty

Asian markets began the week quietly as investors awaited a data-packed week, including a crucial U.S. jobs report. Political uncertainty in Germany and anticipation of Federal Reserve rate decisions added to the cautious sentiment. Oil prices dipped while the dollar remained strong, and gold prices faced pressure.

Asian share markets got off to a quiet start on Monday as investors braced for a data-packed week, culminating in a U.S. jobs report that could decide whether a rate cut expected this month will be regular or super-sized.

A holiday in the United States and Canada made for thin liquidity, while wins for far-right parties in German state elections added a fresh layer of political uncertainty. The dollar held onto gains made on Friday after upbeat spending figures led markets to trim the chance of a half-point easing by the Federal Reserve.

Futures are priced 100% for a cut of 25 basis points on Sept. 18, and imply a 33% probability of 50 basis points. Crucial for the Fed will be the payrolls report on Friday, where analysts expect a rise of 165,000 jobs and a dip in unemployment to 4.2%.

(With inputs from agencies.)