Headlines:
All eyes on Jackson Hole as markets look to wrap up the weekGold continues to hold more rangebound but buyers may be tested post-Jackson HoleDollar sets the stage for further gains towards the end of the weekChina president Xi Jinping likely to skip ASEAN Summit in October – reportGermany Q2 final GDP -0.3% vs -0.1% q/q prelimFrance August business confidence 96 vs 96 priorEurozone wages pick up in Q2 after easing in the previous quarter
Markets:
USD leads, NZD lags on the dayEuropean equities a little higher; S&P 500 futures up 0.2%US 10-year yields flat at 4.333%Gold down 0.3% to $3,328.84WTI crude up 0.3% to $63.73Bitcoin down 0.1% to $112,309
It was a slower session once again as markets stick with the countdown to the Jackson Hole Symposium later today. The wait is almost over but so is the week, and that means there might not be too much time to work anything out before the weekend. That especially if Fed chair Powell doesn’t offer up anything later.
The standout among market moves is actually from Japan, with 30-year yields rising to its highest since 2000. That finally sees it crack the 3.20% level, with political risks being a consideration as Ishiba is yet to step down as prime minister. Yields have been pressed higher ever since the upper house election loss.
Japan 30-year government bond yields daily chart (%)
In other markets though, things are relatively subdued. Major currencies are not doing much again with the dollar keeping steadier after some slight gains from yesterday. EUR/USD continues to be pinned down just under 1.1600 while USD/JPY is up just 0.% to 148.70 on the day. The changes elsewhere are also nothing noteworthy with most dollar pairs near flat on the day.
In the equities space, US futures nudged a little higher but it’s still early in the day as investors will have to wait and see on comments from Jackson Hole. European indices are at least finding some light comfort after a sluggish start but the gains are nothing significant, with the week being a rather mixed one for stocks in the region.
All eyes now are fixed on Jackson Hole to see what comments we might get before the weekend comes along. Fed chair Powell is not likely to pre-commit to a rate cut but market players will watch for any signals about easing in September. It will be subtle, likely communicated through his view on the labour market. So, we’ll see.
Have a great weekend, everyone. This article was written by Justin Low at investinglive.com.