(The opinions expressed here are those of the author, a

columnist for Reuters.)

By Mike Dolan

LONDON, Sept 8 (Reuters) - What matters in U.S. and

global markets today

By Mike Dolan, Editor-At-Large, Finance and Markets

Markets face a politically-charged start to the week in

Japan

and

France

, but attention will soon turn back to the U.S. where

interest rate markets are once again mulling the chance of

half-point Federal Reserve rate cut next week after

another soft August payrolls

report jarred markets on Friday.

Ahead of August inflation reports due later in the week and

annual payroll revisions out tomorrow, two- and 10-year Treasury

yields on Friday plunged to their lowest levels since April,

while the dollar and

S&P 500 stocks fell

.

* Japan's Nikkei rose as the yen weakened slightly after

Prime Minister Shigeru Ishiba resigned on Sunday and ruling

Liberal Democratic lawmakers prepared bids to replace him - with

fiscal dove Sanae Takaichi and Shinjiro Koizumi the

frontrunners. But with market bets on an October Bank of Japan

rate rise halved to just a 20% chance over the past week,

Japan's 30-year bond yield climbed to new record highs. French

stocks, bond prices and the euro were firmer, however, as the

latest French government faces a confidence vote today.

* Friday's U.S. employment report showed the jobless rate

ticking up to its highest in four years, as expected, but weak

job creation reinforced fears of a weakening labor market. Even

though Fed officials are in a blackout period ahead of next

week's meeting, this week's CPI report will now be critical to

the outcome and the New York Fed's inflation expectations survey

is due later today. Political pressure on the Fed intensified on

Friday as Treasury Secretary Scott Bessent called for renewed

scrutiny of the Federal Reserve, including its power to set

interest rates, as the Trump administration intensifies its

efforts to exert control over a central bank.

* Elsewhere, world stocks were generally higher - even in China

where the latest trade numbers showed China's export growth

slowed to a six-month low in August and imports also missed

forecasts. China's exports to the U.S. fell 33.12% year-on-year

in August, while its shipments to Southeast Asian nations rose

22.5% in the same period. Oil prices climbed more than $1,

regaining some of last week's losses, after the weekend OPEC+

output hike was seen as modest due to concerns over more

sanctions on Russian crude. The European Central Bank meets on

Thursday, with economists expecting no change to policy rates as

inflation hovers near the central bank's 2% target.

Today's column looks at why the dollar's much-vaunted 'safe

haven' status during the 2008 bank crash may have been a

mirage.

Today's Market Minute

* U.S. President

Donald Trump

said on Sunday he is ready to move to a second phase of

sanctioning Russia, the closest he has come to suggesting he is

on the verge of

ramping up sanctions against Moscow or its oil buyers over

the war in Ukraine.

* Ruling party lawmakers in Japan prepared their bids to

replace outgoing premier Shigeru Ishiba on Monday, as financial

markets recoiled on the political uncertainty and the

possibility of his successors ramping up government

spending.

* South Korean Foreign Minister Cho Hyun will head to the

U.S. on Monday as he seeks to resolve the fallout over the

detention of hundreds of Korean workers during an immigration

raid at a time when

Seoul has committed to massive investment plans in America.

* OPEC+'s

surprise announcement

that it will further accelerate oil production may seem

like a threat to an already oversupplied market, but ROI energy

columnist Ron Bousso argues that the actual market impact is

likely to be limited.

* Summer is over, and TPW Advisory Founder Jay Pelosky says

that means one thing: we're about to see fund managers' mad dash

to year-end as everyone seeks to boost performance. He offers

three counterintuitive points to keep in mind amid the

scramble.

Chart of the day

France's fourth prime minister in three years, François

Bayrou, faces almost certain defeat in a confidence vote,

tipping the euro zone's second-biggest economy further into

political uncertainty. The upheaval threatens France's ability

to rein in its debt, with the risk of further credit downgrades

looming and Fitch due to give its verdict on Friday. France

faces acute pressure to repair its finances, with last year's

deficit nearly double the EU's 3% limit of economic output and

public debt at 113.9% of GDP.

Today's events to watch

* U.S. August employment trends (10:00 AM ET), July consumer

credit (3:00 PM ET), New York Fed's August survey of consumer

expectations

* French parliament holds confidence vote in government,

National Assembly begins meeting at 8:00 AM ET

* Norwegian Parliament election, final day of voting

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(The opinions expressed here are those of the author, a

columnist for Reuters)