Volkswagen plans factory closures in struggling Germany [Video]

The new week started with caution. The US and Canada were off, and news from Europe weren’t exceptional. The data released on Monday showed that the manufacturing PMI figures for August were slightly higher than expected, but numbers in major Eurozone countries remained below 50, in the contraction zone for another month. Volkswagen announced unprecedented factory closures in Germany. But the European indices gained, along with the euro. Mood is different this morning, with the US dollar broadly in demand against major peers.

All eyes are on the US jobs data this week. Investors around the world needs the Federal Reserve (Fed) to start cutting the rates as the sluggish China and slowing developed economies weigh on sentiment. Commodities and metals are under pressure, as mining companies are struggling to maintain the reflation enthusiasm alive.

And speaking of enthusiasm or the lack thereof, September is blamed to be a bad month for both equities and credit. And at the historically high levels, with a decent level of uncertainty regarding what the Fed should (and what the Fed will) do, the geopolitical tensions, war, energy crisis and so, there is little to make this September better than the others.