XE Market Analysis: Europe – Sep 04, 2015

The yen is firmer in a pre-U.S. jobs report risk-off theme. Japan’s Nikkei 225 revised early session gains and finished with a 2.2% decline, and other Asian markets, and U.S. equity futures and commodity prices, are also down. The possibility of a sufficiently firm jobs report today that would seal a Fed tightening at the mid-month FOMC is feeding a cautious sentiment in markets. Historically, Wall Street tends to wobble during monetary tightening cycles, though recover thereafter. The added concern in the current era is the impact it might have on Chinese markets.