Indices starting positive
Rumours of bold announcement regarding easing policy and adding stimulus are keeping most asset classes buoyant as the European session gets under way. With the Jackson Hole Symposium from Thursday onward being the major focus of the week, date releases and other inputs are looking as if they will take a back seat for the rest of the week.
US index futures are all higher on the day, with gains of between 0.05% and 0.11% so far, while UK shares are looking to notch up gains of 0.26%. The Germany30 index is currently up 0.15% today. On the currency front, activity again is a bit more subdued. The US Dollar Index is trading slightly softer from 2019 highs and the broader risk-on sentiment has boosted the Aussie but the pound cannot seem to benefit from the other inputs as Brexit uncertainty remains a dominant cloud. Conservative Party Chairman Cleverly declared that the EU needs to show more flexibility in Brexit negotiations.
Germany30 Index Daily Chart
Indices starting positive
Rumours of bold announcement regarding easing policy and adding stimulus are keeping most asset classes buoyant as the European session gets under way. With the Jackson Hole Symposium from Thursday onward being the major focus of the week, date releases and other inputs are looking as if they will take a back seat for the rest of the week.
US index futures are all higher on the day, with gains of between 0.05% and 0.11% so far, while UK shares are looking to notch up gains of 0.26%. The Germany30 index is currently up 0.15% today. On the currency front, activity again is a bit more subdued. The US Dollar Index is trading slightly softer from 2019 highs and the broader risk-on sentiment has boosted the Aussie but the pound cannot seem to benefit from the other inputs as Brexit uncertainty remains a dominant cloud. Conservative Party Chairman Cleverly declared that the EU needs to show more flexibility in Brexit negotiations.
Germany30 Index Daily Chart
Does the data calendar matter?
As mentioned above, the market’s focus is on Fed Chairman Powell’s Jackson Hole speech on Friday, so data releases are expected to take a back seat. For the record, today’s data slate could pass unnoticed. German producer prices in July were in line with expectations at +1.1% y/y and Euro-zone construction output for June (old data) is up next. From the US side, we can expect the weekly Redbook Index followed by a speech from the Fed’s Quarles.
