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 Wall Street capped a tough week on Friday, with major indexes
closing down more than 1 percent, after a mixed August jobs report
did little to quell uncertainty about whether the Federal Reserve
will increase interest rates this month.
China's imports shrank far more than expected in August, falling for
the 10th straight month. Imports fell 13.8 percent from a year
earlier, more than the 8.2 percent drop economists had expected.
Global financial markets have been rattled in recent weeks by fears
that China's slowdown could drag on already sluggish global growth,
prompting some investors to bet that the U.S. central bank will
delay a hike until the end of the year.
Following Friday's employment data, futures market traders predicted
about a 20 percent chance a rate hike will come this month, down
from around 30 percent before the jobs.
Nonfarm payrolls increased by 173,000 last month, fewer than the
220,000 that economists polled by Reuters had expected. But the
unemployment rate dropped to 5.1 percent, its lowest in more than
seven years, and wages accelerated.
The Fed has said it will raise rates for the first time in nearly a
decade when it sees a sustained recovery in the economy. While the
labor market has strengthened, inflation remains below the 2 percent
target.
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Data on Tuesday showed U.S. small business confidence rose modestly
in August, suggesting the economy continued to grow at a steady clip
halfway through the third quarter.
Federal Reserve Bank of Minneapolis President Narayana Kocherlakota
is expected to speak at an event later in the day in Evanston,
Illinois.
Apple shares were up 2.2 percent at $111.74 premarket a day before
the iPhone maker is expected to unveil new offerings.
Fitbit was up 9.5 percent at $34.90 after Morgan Stanley upgraded
the stock to "overweight".
(Editing by Don Sebastian)
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