Markets Await Powell’s Speech; Stocks Poised for Weekly Upswing

Key Highlights:

  • Focus on central bank conference at Jackson Hole.
  • Commodity stocks push Stoxx 600 up, driven by rising oil and iron ore prices.

On Friday, U.S. futures and European stocks recorded moderate gains as the financial world set its eyes on Federal Reserve Chair Jerome Powell’s address from Jackson Hole.

S&P 500 futures experienced a 0.3% uptick, indicating some relief for stocks following a downturn on Thursday. Meanwhile, Europe’s Stoxx 600 marked its first positive weekly trend in a month, with commodities stocks seeing an upswing due to rising oil and iron ore valuations.

Stocks this week have displayed volatility, with significant gains one day and losses the next. The spotlight shifted between Nvidia Corp.’s financial results and evolving interest rate paths. After a 2% drop the previous day, Nasdaq 100 futures remained consistent on Friday.

Two-year Treasury yields, sensitive to impending policy shifts, ascended slightly, maintaining above a 5% mark. Powell, set to speak at 10:05 a.m. Washington time, is anticipated to provide insights on the evaluation of rate hikes and the right moment to commence reductions.

In other news, China has further relaxed its mortgage regulations to bolster its economic standing, although the immediate stock market uplift from this decision was fleeting.

As for commodities, iron ore is on track for its most significant weekly increase since June, anticipating China’s heightened construction activities starting next month. Meanwhile, oil decreased its weekly losses.

Noteworthy Market Activities:

Stocks:

  • S&P 500 futures up by 0.3% as of 7:05 a.m. NY time.
  • Nasdaq 100 futures increased by 0.1%.
  • Dow Jones Industrial Average futures up by 0.3%.
  • Stoxx Europe 600 up by 0.5%.
  • MSCI World index declined by 0.2%.

Currencies:

  • Bloomberg Dollar Spot Index remained stable.
  • Euro steady at $1.0808.
  • British pound inched up 0.1% to $1.2616.
  • Japanese yen stayed consistent at 145.95 per dollar.

Cryptocurrencies:

  • Bitcoin rose by 0.3% to $26,102.31.
  • Ether increased by 0.3% to $1,653.39.

Bonds:

  • 10-year Treasury yield rose by one basis point to 4.25%.
  • Germany’s 10-year yield increased five basis points to 2.56%.
  • UK’s 10-year yield grew by three basis points to 4.46%.

Commodities:

  • West Texas Intermediate crude ascended 1.2% to $79.96 per barrel.
  • Gold prices dipped 0.1% to $1,944.60 an ounce.

This week’s key events include speeches from Fed Chair Jerome Powell and ECB President Christine Lagarde at the Jackson Hole conference, and the release of US University of Michigan’s consumer sentiment data.

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Markets Await Powell’s Speech; Stocks Poised for Weekly Upswing

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