What to Watch in the Day Ahead - Friday, Oct. 3

Thu Oct 2, 2014 2:30pm EDT
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(The Day Ahead is an email and PDF publication that includes the day's major stories and events, analyses and other features. To receive The Day Ahead, Eikon users can register at . Thomson One users can register at RT/DAY/US. All times in ET/GMT)

U.S. employment growth likely accelerated in September after unexpectedly braking to an eight-month low a month earlier, which could bolster bets on a Federal Reserve rate hike in mid-2015. Economists polled by Reuters expect U.S. non-farm payrolls to rise by 215,000, with the jobless rate holding at 6.1 percent (0830/1230). The ISM is expected to report that its non-manufacturing index eased a bit to 58.5 in September from 59.6 in August (1000/1400). The Markit service sector index is expected to show activity remained at high levels (1000/1400).

FMSA Holdings is expected to make its trading debut. The company's initial public offering is expected to raise up to $1.07 billion at the top end of the expected price range. FMSA, which provides sand and sand-based products to oil and gas exploration and production companies, is owned by private equity firm American Securities. Ohio-based FMSA will be valued at about $4 billion at the top end of the expected price range.

Financial service platform Yodlee Inc is expected start trading. The company will be valued at up to about $368 million at the top end of the expected range of $11-$13 per share. The company is offering 6.3 million shares and is expected to raise up to $81.3 million. Yodlee, whose main investors include private equity firm Warburg Pincus and Bank of America, counts nine out of the 15 largest U.S. banks as its customers.

In Canada, the trade balance report for August will grab the market's attention. The country's trade surplus is expected to pull back to C$1.55 billion from a near six-year high the month before. Exports are also expected to slow slightly to a still-strong C$45.54 billion from a record high in July. The strength of the export sector is closely watched by economists as the Bank of Canada is looking for exports and business investment to drive economic growth (0830/1230).

HSBC Purchasing Managers Index for Brazil's services for September is expected to be released. Activity in Brazil's services sector shrank in August for the first time since January and at the quickest pace in two years, suggesting Latin America's biggest economy may remain stuck in a recession (0900/1300). Mexico's monthly survey of analysts will show if growth expectations have picked up after signs of stronger industrial output and domestic demand. Inflation estimates may also rise after a recent spike in inflation from fresh food costs and due to concerns of a minimum wage hike. (Compiled by Nikhil Kumar in Bangalore; Editing by Kirti Pandey)