European equity markets are expected to open in the green on Wednesday. The Eurostoxx 50 opened at 4,196.41 points down 0.06%, the CAC 40 at 6,680.18 points (-0.11%), the DAX 30 at 15,835.09 points (-0.33% ), the FTSE 100 at 7,119.70 points (-0.40%), the SMI at 12,411.11 points (-0.20%), the AEX at 787.62 points (-0.19%), the BEL 20 at 4,308.92 points (-0.16%), IBEX 35 at 8,846.60 points (-0.24%), DJIA at 35,360.73 points (-0.11%), Nasdaq at 15,259.24 points (-0.04%), the S&P 500 at 4,522.68 points (-0.13%) and the Nikkei 225 at 28,391.59 points with an increase of 1.08%.

In terms of exchange rates, the change from the close in New York indicates that EUR/USD opens at 1.1802 down 0.06%, EUR/JPY at 130.07 (+0.13%) and USD/JPY at 110.21 with an increase of 0.19%.

On this first day of September, investors will be paying attention to the final figures from the PMI for the manufacturing sector in August. Preliminary data, released by IHS Markit on August 23, signaled a decline in the index to 57.3, its lowest level in six months, from 58 in July. On the business side, Pernod Ricard publishes its annual results, while bioMérieux unveils its accounts for the first half.

European equity markets are expected to start September in positive territory as investors continue to show optimism despite the threats posed by the Delta variant of the coronavirus to many economies. At 7:35 a.m., the CAC 40 futures contract gained 41 points, or 0.6%, according to data from broker IG Markets. The DAX 30 contract was up 77 points, or 0.5%, and the FTSE 100 contract was up 34 points, or 0.5%. Over the next few days and weeks, investors will be watching the progression of Covid-19 cases and hospitalizations, in particular in the United States where the Delta variant threatens a strong economic recovery. At the same time, they are awaiting the August report on payroll employment outside the agricultural sector, which is scheduled for publication on Friday. Economists polled by the Wall Street Journal anticipate 720,000 job creations in the United States last month, after 943,000 in July.

Ahead of that data, the market will be paying attention on Wednesday to the ADP private sector employment report, which will provide a first indication of the health of the US labor market last month. Economists predict the announcement of 600,000 job creations in August, against 330,000 in July. In the euro zone, unemployment figures for July will be published at 11:00 a.m., after the PMI indices for the manufacturing sector of the euro zone and its member states. The PMI and ISM indices for the manufacturing sector in the United States will also be monitored in the afternoon. On Tuesday, Wall Street paused in the aftermath of record highs in the wake of dovish remarks by Federal Reserve (Fed) Chairman Jerome Powell at the Jackson Hole symposium. The Dow Jones index (DJIA) fell 0.1% to 35,360.73 points. The broader S&P 500 index also lost 0.1% to 4,522.68 points, and the Nasdaq Composite ended down 0.04% to 15,259.24 points.

In China, manufacturing activity fell in August to its lowest level in a year and a half, due to factory closures imposed as part of containment measures intended to combat a new wave of Covid-19. The manufacturing PMI fell to 49.2 in August from 50.3 in July, Caixin and IHS Markit said on Wednesday. Despite these announcements, the main stock indexes rose on Wednesday. At the end of the session, the Shanghai Composite gained 0.7% and the Hang Seng index of the Hong Kong Stock Exchange took 0.6%. In Tokyo, the Nikkei index gained 1.1%.

The yield on the 10-year US Treasury bond in August made its strongest monthly advance since March, ending the month at 1.308%. On Wednesday at 7:35 a.m., the market reference rate continued to rise, standing at 1.332%. Nevertheless, the US benchmark bond is still below its March high of 1.749%, as mixed economic indicators could lead the Fed to maintain its support measures for the economy. The publication on Friday of the employment report in the United States should reveal a high number of hirings, however lower than the 943,000 announced in July.

The euro fell slightly against the dollar on Wednesday morning. At 7:35 a.m., the single currency traded at 1.1797 dollars, down 0.1%. Currently, it is trading at levels close to its descending 20-day moving average, which has moved below the 50-day average. Key trailing resistance has fallen at 1.1830. Until this level is broken, the pair should retreat towards 1.1785 and 1.1770.

Oil prices gained ground Wednesday morning. At 7:25 a.m., the November North Sea Brent contract was up 48 cents to $72.11 a barrel. The October contract on Nymex-listed light sweet crude (WTI) took 51 cents to $69.01 a barrel.