While global markets are following a cautious course ahead of US Federal Reserve (Fed) President Kevin Warsh’s statements at the Jackson Hole Economic Policy Symposium, positive pricing is prominent in European stock markets.
Macroeconomic data announced the previous day in the USA pointed out that inflationary pressures were continuing, somewhat overshadowing the optimism created in the markets by chip company Nvidia’s balance sheet exceeding expectations.
Analysts pointed out that Warsh’s more detailed explanation of what developments might lead to an interest rate increase in the future could help calm the markets and reduce risk premiums somewhat, and stated that even a signal that provides clear guidance regarding the course and timing of policy steps could have a significant impact on the markets.
The monetary policy meeting minutes of the European Central Bank (ECB), published yesterday, revealed that the Bank is preparing for a new interest rate increase soon if inflation does not fall.
ECB Executive Board Member Isabel Schnabel will also speak at the panel titled “Financial Innovation: Implications for Payments and Policies” at the Jackson Hole Economic Policy Symposium.
In European markets, as of 10.25, the Stoxx Europe 600 indicator index is at 655 points with a 0.6 percent increase, and the FTSE 100 index in England is at 10,842 points with a 0.5 percent gain.
In Germany, the DAX 40 index is at 26,489 points with a 0.5 percent gain, in Italy the FTSE MIB 30 index is at 52,741 points with a 0.9 percent premium, in France the CAC 40 index is at 8,402 points with a 1 percent gain, and in Spain the IBEX 35 index is at 20,039 points with a 0.8 percent increase.
Analysts noted that in addition to Fed Chairman Warsh’s speech today, the unemployment rate in Germany, the economic confidence index in the Eurozone, and the consumer confidence index and inflation expectation data to be announced by the University of Michigan in the USA will be followed.
