The paramount intrigue of the week is the results of the Jackson Hole conference run by the Federal Reserve (Fed) and the statement of its Chairman Jerome Powell that is going to take place on Friday. Financial markets are desperately waiting for the major Fed policymaker to announce further perspectives surrounding the monetary policy.
However, the Fed is in awkward situation as, on the one hand, it has clear signs of economic recovery with 6.6% GDP up in the second quarter of 2021, and above 6.4% in the first quarter of this year, together with the first estimate of Q2 GDP growth being 6.5%.
markets continue to slowly and steadily climb higher , with the Euro Stoxx 50
major indicator adding just about 0.8% since the beginning of the week until
noon on Wednesday. However, its increase is almost 2.5% if compared with the
last local price bottom of August 19.
speaking, most of the EU stocks could perform even better if it were not for
the German market which clearly underperformed today after today's
contradictory release of the national business climate gauge regularly measured
by the well-known Ifo Institute on a monthly basis.
are mostly steady on Wednesday, anticipating the U.S. Federal Reserve minutes,
which probably would not contain any defining signs for policy changes but may cause
some usual after-volatility, a week of corporate reports from major retailers
have already made some preliminary discrepancy into the overall sentiment.
Depot, which is Atlanta-based and the largest home improvement and furniture
shopping network in the United States, is still very successful amidst the
pandemic crisis time. However, its shares initially dropped more than 4.
of this week, was expected to bring
about high volatility in the markets suddenly. But the truth of the matter is
that it is showing extreme fragility and uncertainty with price movements and
factors affecting it. Investors are trying to tune into any kind of signals
that would reflect the policy of the Federal Reserve (Fed). In fact, markets
are picking up some signals that were considered with low relevance before.
was suddenly interrupted by worse July unemployment data compiled by ADP.
Zealand Dollar, or just the Kiwi, according to the traders' slang term, could
become the second of the major currencies to strengthen on a systematic basis
after the Loonie, which is the Canadian Dollar. The last one has been embarking
on a healthy path since the third week of April when the central bank of the
country changed the size of the quantitative easing (QE) monetary program from
$4 billion to $3 billion loonies per week, thus partly compressing the growth
pace of the excessive money supply.
Pound is among the most prominent currencies that are seen to be benefiting from
the U.S. Dollar weakness in the end of July. And, there are several drivers that
seem to be pushing the Pound upside.
Dollar is consciously being pressured by the Federal Reserve (Fed) with its
loose monetary policy. The Fed and its Chair Jerome Powell reconfirmed recently
its commitment to continue quantitative easing policy with pumping as much as
$120 billion each month for an uncertain period of time.
corporate earnings updates from the market's world-known issuers, followed by
CEOs conference calls - as it usually happens - wore ruts in the fundamental
background road of the week. None of them tried to eclipse the overall sunny
sentiment with even one cloud.
pioneer mass manufacturer of electric vehicles, broke its own delivery record
by building and shipping more than 200,000 vehicles during the second quarter.
That was as much as 151% growth over last year. The company also added nearly
1,000 supercharging stations to its network.
prices have been performing a downside movement since mid-July as they fell
from $1146 per troy ounce to $1054, or by almost 8%. Platinum went under a
global sell off of risky assets used for the production of other items – crude,
stocks, metals, etc. fell victim to negative market sentiment as new, more
contagious and deadly COVID-19 Delta and other strains spread around the globe.
signals of possible early tapering of monetary stimulus in the United States due
to the rise in inflation levels are seen to be much more visible recently.
bulls were routed during the first trading day of the week, both at the
American and the European battlefields. The U.S. S&P 500 broad market index
futures initially lost 96 points just one hour before the closing of Monday's
session, touching the local bottom, which was 3.65% lower compared with the
multi-month high of 4384.38 points on July 14.
that the single European currency has been laying on the side of risky assets over
recent months. All of these risky assets are currently standing against the
U.S. Dollar, which has been acting like a safe haven asset so far this year.
The dovish rhetoric of Federal Reserve’s (Fed) Chair Jerome Powell in the U.S.
Congress seems to be pressuring the Greenback while supporting the Euro.
Mr. Powell streamed
placidity despite shocking inflation figures in the United States that hit