FX.co ★ Collapse in US and European stock markets continues amid MICEX rally

US stocks fell as investors faced ambiguous labor market data this week, awaiting Friday's jobs report to get additional hints about the Federal Reserve's plan to raise rates. Commodities declined after China imposed a lockdown in the Chengdu metropolis, hitting economic growth.

The S&P 500 and the Nasdaq 100 went down. Commodities including oil, gold, and copper fell as the dollar rose. Treasury yields increased and the curve became steeper as traders expect corporate bond sales to recover starting next week.

European stock indices are about to undergo their yearly crises after the complete shutdown of Nord Stream:

This week, investors have been studying ambiguous labor market data, trying to figure out how aggressive the Fed's stance will be during its meeting this month. Low jobless claims on Thursday as well as Tuesday's job opening data pointed to a strong labor market. However, updated ADP data showed on Wednesday that US companies increased headcount at a relatively sluggish pace in August.

Friday's US jobs report along with strong July's employment data, improved consumer sentiment and an unexpected increase in job openings could push the central bank into a third major hike.

The Moscow Exchange Index is changing this summer's high, approaching 2,500:

This year, Russia is considering buying up to $70 billion worth of yuan and other currencies to slow the ruble's rise before implementing a long-term strategy of selling its reserves of Chinese currency to finance investment.

Some key events to watch this week:

• ECB Governing Council members due to speak at event Tuesday through Sept. 2
• US nonfarm payrolls, Friday
• UK leadership ballot closes Friday. Winner announced Sept. 5