CashNews.co
As UK markets close for the August Monday bank holiday, global markets were mixed following Federal Reserve chair Jerome Powell’s speech at the Jackson Hole symposium of central bankers on Friday.
Powell said the “time has come” to cut rates in the US — a hail Mary for those waiting for cheaper US debt.
He added that the bank would be watching for further warning signs of cooling in the job market and that he was confident the target rate of 2% inflation is within reach.
“The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks,” he said.
US markets on Friday
Markets rose following the speech on Friday, with the three major gauges closing more than 1% higher.
The Dow (^DJI) and S&P 500 (^GSPC) rallied 1.2%, while the tech heavy Nasdaq (^IXIC) closed 1.5% in the green.
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Futures pointed to a less euphoric open later on following the closes, which were close to records.
Trade in Europe
European markets were mixed on Monday, with Germany’s DAX (^GDAXI) opening 0.2% lower and the CAC 40 (^FCHI) in France rising 0.2%.
The pan-European STOXX 600 (^STOXX) meanwhile was almost flat.
Traders’ attention turned to the conflict in the Middle East as they weigh risks. Strikes by both Israel and Hezbollah over the weekend have led oil prices higher. Crude oil futures contracts (CL=F) were trading as high as $75.63 per barrel and were almost 1% higher than the previous session on Monday morning in London.
Monday trade in Asia
Earlier on Monday, major Asian indexes went in different directions, as the Nikkei (^N225) fell 0.7% in Japan and the Hang Seng (^HSI) rose 1.1%.
Japanese stocks dipped as the Yen strengthened against the dollar and the country’s central bank chief hinted at further rate hikes. He also said the bank is looking closely at the major fluctuations in stock prices.
Meanwhile, the People’s Bank of China left its rates on one-year policy loans at 2.3% following a 0.2% cut in July. It is another sign of cautious policymaking in one of the world’s growth engines.
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