With a relatively light economic data calendar this week, all eyes are on the release of the Fed’s July meeting minutes on Wednesday and Fed Chairman Jerome Powell’s speech at the Jackson Hole annual meeting event on Friday for clues on the outlook for US interest rates.
Global stocks neared their highest levels in a month in Tuesday’s trading, while the Dollar hit an 8-month low, as investors focused on speculation that the US Federal Reserve could provide further clues on upcoming interest rate cuts.
The US DOLLAR weakened in trading on Monday (19/08/24), following a surge in the equity market last week driven by expectations that the US economy would be able to achieve a soft landing, namely: avoiding a recession while at the same time inflation is declining, which will smooth the way for interest rate cuts.
Global stock markets raced higher but the US DOLLAR weakened on Monday trading (19/08/24), following last week’s equity market surge driven by expectations that the US economy will be able to achieve a soft-landing, i.e.: avoiding recession while at the same time inflation flattens will pave the way for interest rate cuts.
Upbeat economic data continued to emerge ahead of the Federal Reserve’s annual Jackson Hole meeting. Survey data from the UNIVERSITY OF MICHIGAN released on Friday showed that consumer sentiment recovered in August for the first time since May, boosted by developments in the US presidential election, which further eased concerns about the economy.
The S&P 500 and other indexes closed in positive territory on Friday (16/08/24), recording its best week of the year as easing fears of an economic recession fueled stock buying after recent market turmoil. The Dow Jones Industrial Average rose 96 points, or 0.1%, the S&P 500 gained 0.2%, and the NASDAQ Composite appreciated 0.2%.
US Treasury yields surged after surprisingly stronger-than-expected US Retail Sales data eased concerns about an economic slowdown, dampening investor speculation about aggressive interest rate cuts in the near future.
Global stock markets rose on Thursday and US Treasury yields surged after surprisingly stronger-than-expected US Retail Sales data eased concerns about an economic slowdown, dampening investor speculation about aggressive interest rate cuts in the near future.
The US CPI (Jul) data released as expected further convincing investors that the Federal Reserve will be able to start cutting US interest rates next month.
