Caution prevails as markets await key labor data

Market sentiment has continued to improve following the conclusion of the corporate earnings season and the easing of US recession fears in August.

However, caution prevails as markets await key labor data to be released this week, which will provide further insights into ongoing recessionary concerns in the US. Other significant economic data this week include BNM’s interest rate decision.

Caution prevails

“We advocate investors to stay defensive until the US labor market data is released to mitigate market volatility risk. If the jobs data is favorable, we believe the construction, utilities, and technology sectors will be the preferred destinations for funds, particularly in the lower liners.

“Conversely, we anticipate continued selling pressure in oil and gas stocks as international oil prices extend their losses,” says Apex.

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