Market Turmoil as Investors Eye Crucial U.S. Jobs Data

Global markets saw slight declines on Monday as investors prepared for an important U.S. jobs report due later in the week. Chinese manufacturing activity dipped to a six-month low, and European markets were hit by political uncertainties. The report could influence the size of a potential U.S. rate cut.

Global markets experienced minor declines on Monday as investors braced themselves for a crucial data-loaded week, culminating with a report on U.S. employment that could determine whether an anticipated rate cut will be regular or substantial.

Survey data released on Saturday showed a six-month low in Chinese manufacturing activity for August, while Monday's data indicated ongoing struggles for euro zone factories. Political uncertainties in Europe arose as populist parties achieved wins in German state elections, further affecting market sentiment.

Both German and British markets saw slight declines, with the DAX and FTSE 100 falling by 0.1% and 0.2% respectively. Strategist Aneeka Gupta from WisdomTree attributed the drop in European equities to weaker economic data from China, particularly affecting industrials and consumer discretionary sectors. Meanwhile, the week is set to be pivotal as the U.S. non-farm payrolls report—anticipated to show a growth of 165,000 jobs in August—will be released on Friday, potentially shifting current expectations for a Federal Reserve rate cut.

(With inputs from agencies.)