Marketmind: Jitters mount as Powell retakes centre stage
Reuters
Published Aug 25, 2023 12:33AM ET
A look at the day ahead in European and global markets from Brigid Riley
Fed Chair Jerome Powell will be back in the spotlight when he takes the podium at Jackson Hole later in the day to deliver a speech investors have been waiting for all week.
Any hints about the Fed's rate outlook are sure to reverberate across asset classes.
Stock markets around the globe slid as nerves grew, with Wall Street taking a tumble overnight and Japan's Nikkei dropping 2% in the Asian morning.
Stoxx 50 futures didn't offer much hope for the coming day after Europe's benchmark drooped on Thursday.
The pristine U.S. resiliency story took a hit earlier this week after surveys showing dismal business activity shook confidence. Apparel retailer Gap on Thursday joined a pack of corporations that have forecast steeper-than-expected declines in revenue, against a backdrop of weakening demand for discretionary items.
Meanwhile, weekly figures on unemployment insurance out the same day served as a reminder that the U.S. labour market remains tight, providing no relief for the Fed.
Fed officials squeezed in some final public comments before the boss's speech: Philadelphia Fed President Patrick Harker leaned towards holding policy steady for the rest of the year, while Boston Fed President Susan Collins kept the door open for additional hikes.
Whether or not those comments are any sort of a preview of what's to come from Powell's speech, investors will just have to wait to find out.
Key developments that could influence markets on Friday:
- Jackson Hole: Speeches by Fed Chair Jerome Powell and ECB President Christine Lagarde
- Germany Q2 GDP detailed, August business surveys
- Sweden July PPI, unemployment rate, payrolls
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.