Weekly Economy Outlook with Jobs Data, Fed Inflation, and ECB Rates

Bond markets remain on edge as volatility persists across Europe. France stands at the center of the storm, with a confidence vote in Prime Minister Francois Bayrou’s government scheduled for Monday. A potential DEEP sell-off in French bonds could spark broader doubts about regional stability, especially as ratings agencies like Fitch prepare to weigh in on France’s debt outlook.

The European Central Bank meets Thursday, with rates expected to hold steady at 2%. President Christine Lagarde’s press conference will be scrutinized for any hints of future policy shifts. Markets crave clarity amid rising political risks, but the ECB has emphasized maintaining ambiguity.

In the U.S., attention turns to the labor market. August’s jobs report showed a meager 22,000 new positions—the weakest since the pandemic—with healthcare accounting for nearly all growth. The data could influence Fed policy as inflation concerns linger.