The week opened with a mix of resilience and fragility as U.S. nonfarm payrolls showed only 22,000 new jobs in August, keeping unemployment at 4.3% and fueling bets for a September Fed rate cut. At the same time, the services PMI rose to 52, its fastest pace in six months, underscoring strength in demand despite labor weakness.

In Europe, attention centered on the ECB’s policy decision, with rates expected to hold at 2%, while Germany’s industrial output was seen recovering modestly. UK gilt yields climbed to their highest levels since 1998, a signal of deepening fiscal strain, even as gold surged above $3,600 per ounce on safe-haven demand and central bank purchases.

Energy markets steadied with Brent crude rebounding to $66.5 per barrel after OPEC+ announced a modest 137,000 bpd increase, while crypto traded flat, with Bitcoin hovering near $111K. On the geopolitical stage, China showcased its military power in Beijing with Xi, Putin, and Kim Jong Un standing side by side, a symbolic display of strengthening authoritarian ties.

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