US Fed chief Jerome Powell will speak Friday at a central bankers conference in the US state of Wyoming (Mandel NGAN)
Global stock markets mostly fell Thursday ahead of a widely anticipated speech by the US central bank chief, although a deal on American tariffs for a swathe of EU goods gave a late-session boost to European markets.
The agreement, struck amid President Donald Trump’s tariffs blitz, will see most EU exports face 15-percent levies. But details released Thursday ended lingering uncertainty over how much European producers would suffer.
“This is the most favorable trade deal the US has extended to any partner,” EU trade commissioner Maros Sefcovic said.
The news reassured investors in Europe and came on the same day as purchasing managers’ index (PMI) data showed eurozone business activity at a 15-month high in August, while UK activity grew at its fastest pace in a year.
Overall, however, worries over the chances for US interest rate cuts loomed over markets.
Jerome Powell, chairman of the independent US Federal Reserve, is due to deliver remarks Friday at an annual central bankers conference in Wyoming.
He has resisted Trump’s public demands to slash rates so far, as policymakers gauge the effects of the president’s tariffs on consumer prices.
All eyes are on his final speech as Fed chair at the Jackson Hole Economic Policy Symposium, before his term ends in May 2026, said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
“Although the effect of Trump’s tariffs on monetary policy will be the undercurrent theme, investors will be looking specifically for clues as to the Fed’s inclination to cut interest rates,” she said.
Data last week provided a mixed picture of US inflation, leaving it less clear if the Fed will lower rates as many investors expect in September — a move that could bolster growth in the world’s largest economy.
A recent sell-off in major tech stocks has added to market uncertainty, as investors grow wary of the sustained rally across the sector since April.
The tech-heavy Nasdaq closed lower on Thursday, with shares in AI chip designer Nvidia slightly down after heavy selling in previous sessions ahead of its earnings report next week.
Despite the building unease, shares in Seoul closed higher Thursday, bolstered by an uptick in Samsung’s share price.
Shanghai, Sydney and Taipei also saw moderate gains.
Tokyo’s Nikkei index closed lower, along with Hong Kong.
Global markets have also fluctuated recently on the prospects of a peace deal in Ukraine, following days of high-stakes diplomacy in the aftermath of Trump’s Friday meeting with Russian counterpart Vladimir Putin.
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