GLOBAL MARKETS-Stocks bulls slow their charge, dollar near one-month

On Sep 2, 2021

* European shares nudge higher in early trading

* Asia ex-Japan index backs off 5-week top

* Most markets flat on downside risk for U.S. jobs

* Bottlenecks worsen across Asian factories

* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

* Oil steadies after OPEC+ triggers fall

* Oil eases after OPEC+ lifts output

By Marc Jones and Wayne Cole

LONDON, Sept 2 (Reuters) – Record-high world stocks slowed their charge on Thursday as concerns grew over the Chinese economy after a run of soft data, while the risk of a sub-par U.S. payrolls report kept the dollar on the defensive.

A raft of Asian manufacturing surveys overnight had suggested supply bottlenecks were still tightening, while in Europe, Spanish unemployment fell Swiss GDP data disappointed and Hungary reported producer price inflation running at an eye-watering 14.8%.

The pan-European STOXX 600 index crawled up 0.3%supported by travel, oil, car and chemicals companies although signs of slowing global growth and a ninth day in the last 10 of gains for the euro limited the rises.

“The market seems to be believing Fed policymakers at the moment that inflation is transitory,” Legal & General Investment Management portfolio manager Justin Onuekwusi said, referring to signals that the U.S. central bank will remove stimulus very gradually.

“That implies a lower-for-longer (interest rate) environment” he added, which benefits markets, especially technology stocks which have the most growth appeal.

In Asia, the uncertainty over still-low vaccination rates in many ASEAN economies and China’s zero-tolerance COVID-19 strategy had kept Chinese blue-chips flat, though speculation about more fiscal stimulus offered some support.

MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1% from a five-week high. Japan’s Nikkei added 0.3%, South Korea fell 1%, whereas Hong Kong’s battered tech index enjoyed a fourth day of unbroken gains.

Nasdaq futures and S&P 500 futures were starting to creep up too, having risen again on Wednesday despite some late wobbles.

Wall Street has been preoccupied with second-guessing U.S. August jobs data due out on Friday, with the task made all the more uncertain by a disappointing reading on ADP private payrolls but a solid ISM survey of manufacturing.

Median forecasts are for a strong rise of 750,000 jobs, but they range from 375,000 to 1.02 million with the ADP report prompting speculation the risks are to the downside.

A soft non-farm payrolls number could be positive for risk assets, however, since it would lessen pressure for early tapering from the Federal Reserve.

“A print closer to 400k rather than 800k effectively means that the Fed’s condition of “further substantial progress” in the labour market will take longer to materialise, thus delaying the tapering decision from September to November,” said Rodrigo Catril, a senior FX strategist at NAB.

“Bad news in the labour market are good news for risk…