|
Economy
|
European Markets Await Fed Commentary on Rate Cut
2024-08-21 23:55:08
Markets
Economy

European Markets Await Fed Commentary on Rate Cut

Image used under license from Shutterstock.com

European stocks, including Stoxx 600, CAC 40, FTSE 100, and DAX, are expected to open higher as investors focus on the Federal Reserve's commentary on rate cut options. The market is eagerly awaiting Fed Chair Powell's speech at the Jackson Hole conference for further clues.

Euro area PMI data is also due this week. Meanwhile, Asian-Pacific markets are mostly lower.

In the US, retail sales and jobless claims beat expectations, and earnings season was positive overall. The dollar weakened against the euro and pound, reaching a one-year low, while the Thai baht strengthened.

The Fed's decision on rate cuts in September will be influenced by the upcoming FOMC meeting and CPI data. The market currently predicts a 38% chance of a 50 bps rate cut.

Overall, conditions seem favorable for equities, creating a Goldilocks scenario for investors.

Related news on that topic:

U.S. Stock Market Sees Slight Decline Amidst Uncertainty

The U.S. stock market experienced a slight decline as the continuous rise of the past few days came to a halt ahead of the Jackson Hole meeting. While concerns about a recession recovery persist, doubts about the sustainability of the market's recent gains have emerged. Attention is now focused on Fed Chair Powell's upcoming speech, which could provide insights into the potential for rate cuts. The revised U.S. employment statistics and the release of the Fed minutes are also expected to impact the market. Energy stocks declined, while consumer discretionary stocks saw gains. Positive test results for Eli Lilly's obesity drug and Palo Alto Network's exceeding performance outlook provided some positive momentum. However, Boeing faced a decline due to an airworthiness directive for the 787 aircraft. Overall, the market remains cautious and awaits further clarity on the Fed's policy decisions.

US Job Growth Revised Down, Prompting Speculation of Fed Rate Cuts

The US economy added 818,000 fewer jobs than initially reported in the year ending in March, signaling a slowdown and prompting speculation of Federal Reserve rate cuts. Monthly job growth is expected to be more muted, while inflation has plummeted. Revisions show declines in professional/business services and leisure/hospitality jobs. The Labor Department's downward revision suggests a steadily slowing job market, reinforcing the Fed's plan to cut interest rates. The revision is the largest since 2009 and may be subject to data volatility and noise from immigrant hiring. While the revisions have sparked concerns, some experts argue that the methodology used by the government likely underestimates the contribution of unauthorized immigrants to job growth. The market's response has been relatively muted, with investors awaiting further guidance from the Fed's minutes and Chair Jerome Powell's speech at the Jackson Hole symposium.

Read 48 more recent news on this topic

The press radar on this topic:

Yahoo Finance
21. August 2024 um 20:42

Stocks Set to Rise as Traders Await Rate Cut Clues: Markets Wrap

Finance
Economy
Politics
Technology
Asian stocks fell, with Japanese equities dropping on yen strength. Policymakers in Indonesia and Thailand to hold rates. Australian yields fell. European blue-chip futures rose 0.2%. Investors await US data and Fed signals on rate cuts. Brent crude fell on Gaza and demand concerns. Analyst warns of potential 'bull trap'. The dollar index ticked higher, while the Thai baht rose ahead of the central bank decision.
Tagesschau - Wirtschaft und Börsen-Nachrichten
21. August 2024 um 20:12

Stock Market Rally Halted Time for Profit-Taking in the DAX?

Finance
Economy
DAX slightly in the plus; Wall Street with losses; Nervousness before Jackson Hole; Lufthansa subsidiary Discover: Ballot on strike; Eye care group Alcon confirms annual outlook; US job market data; Oil prices fall; Nikkei index declines; Dollar recovers slightly; Gold price reaches record high.
CNBC
21. August 2024 um 06:13

Europe markets head for higher open with Fed in focus

Finance
Economy
European stocks up, led by Stoxx 600, CAC 40, FTSE 100, DAX; investors await Fed commentary on rate cut, 25 vs 50 bps; focus on Powell's speech at Jackson Hole; euro area PMI data due Thursday; Asia-Pacific markets broadly lower; U.S. retail sales, jobless claims beat expectations; earnings season was 'pretty good'; Goldilocks conditions for equities.
Yahoo!
21. August 2024 um 16:38

Spain stocks higher at close of trade; IBEX 35 up 0.24%

Finance
Economy
Spain's IBEX 35 index rose 0.24% on the Madrid Stock Exchange; gains in Consumer Goods, Consumer Services, and Financial Services sectors led the rise; top performers were Grifols SA, ArcelorMittal SA, and Acerinox; worst performers were SOLARIA ENERGIA Y MEDIO AMBIENTE, Acciona, and Telefonica; December gold futures, October crude oil, and October Brent oil prices declined; EUR/USD and EUR/GBP exchange rates were unchanged.
CW

Account

Waiting list for the personalized area


Welcome!

InfoBud.ai

infobud.ai is an AI-driven news aggregator that simplifies global news, offering customizable feeds in all languages for tailored insights into tech, finance, politics, and more. It provides precise, relevant news updates, overcoming conventional search tool limitations. Due to the diversity of news sources, it provides precise and relevant news updates, focusing entirely on the facts without influencing opinion. Read moreExpand

Spotlighting today's most mentioned stocks in the media. Uncover the stories making waves in the stock market:

A closer look at the individuals who are leading today's news narratives. Find out what makes them the center of attention.

Exploring the five locations receiving the most media attention in the last 24 hours. Discover what puts these places in the global spotlight

Your World, Tailored News: Navigate The News Jungle With AI-Powered Precision!

News

All News
Politics
Technology
Economy
Business
Climate

About

About Us
Team + Mission

Legal

Cookie Settings
Disclaimer
Legal Notice
Data Privacy

Contact

Contact