As the world eagerly awaits Federal Reserve Chair Jerome Powell's speech at the end of this week, investor confidence is on the rise for dovish rhetoric from the central banker. Asian shares have already reached a one-month peak, and stock futures indicate a positive start for London and New York.
Despite a stronger yen, even shrugged off the weight and hit a two-week high. With a chorus of Fed speakers signaling a September rate cut, Powell is expected to stay on script during his speech at Jackson Hole, Wyoming.
Markets are fully anticipating a 25 basis point easing next month, so all eyes will be on Powell for hints of a larger cut and his outlook on the economy. Meanwhile, Sweden's central bank is expected to lower rates later today, with Canada likely to follow suit due to slowing inflation.
China kept its benchmark lending rates unchanged, reflecting challenges in easing efforts. Key events to watch today include Germany's producer prices, Fed speakers' remarks, Riksbank's rate decision, and Canada's inflation report.
Stay tuned for updates on these market movers. (By Rae Wee; Editing by Edmund Klamann)
Analysis:
Investors are eagerly anticipating Federal Reserve Chair Powell's speech for clues on future rate cuts and the economic outlook. With markets already pricing in a September easing, Powell's words could sway stock market performance. Additionally, central bank decisions in Sweden and Canada, along with China's unchanged lending rates, will impact global markets. Keep an eye on these developments for potential investment opportunities and financial planning.