Major European stock exchanges, including Piazza Avary, should start the first session of the week on parity, following the cautious remarks of Federal Reserve Chairman Jerome Powell, speaking at Jackson Hole. Powell eased concerns about an imminent Fed monetary policy tightening.
While acknowledging that a reduction in asset purchases (tapering) may be appropriate “this year”, Powell did not offer a specific timetable for tapering the US central bank’s stimulus measures, but he ruled out the possibility that tapering of quantitative easing was implied. Immediately after raising the interest rate. He also indicated that the Federal Reserve would remain cautious in any decision to raise the interest rate in an attempt to return the economy to full employment, stressing that inflation is “transient.”
Against this backdrop, traders will closely follow the US employment data, released this week, with the release of the ADP Private Sector Survey (Wednesday) and the Labor Department’s monthly report (Friday).
Meanwhile, inflation will spread in Spain and Germany and ongoing home sales in the US today. Please note that the London Stock Exchange will be closed in celebration of the Bank Holiday.
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