Financial Markets Daily Report28 August 2023
In the last session of the week, investors digested the central bank presidents’ speeches at the awaited Jackson Hole conference. There, Jerome Powell said that the US Federal Reserve will proceed carefully in the coming months and that monetary policy will remain restrictive for longer, hinting at a possible pause in the September meeting.
- In the last session of the week, investors digested the central bank presidents’ speeches at the awaited Jackson Hole conference. There, Jerome Powell said that the US Federal Reserve will proceed carefully in the coming months and that monetary policy will remain restrictive for longer, hinting at a possible pause in the September meeting.
- At the same time, ECB president Christine Lagarde said that the ECB will bring rates as high as necessary and will keep them there for as long as necessary to bring inflation back to the 2% target.
- In this context, yields on sovereign bonds and stock indices rose on both sides of the Atlantic, while equities declined in Asia. In FX markets, the US dollar strengthened and the euro fluctuated around $1.08.
- This week, the focus will be on August flash CPI inflation figures in Europe (Spain on Wednesday, the euro area on Thursday) and on August US employment report (Friday).