Market movements have been relatively moderate in recent days (with many traders absent and business activity relatively weaker). The FTSE 100 eased early in the session, falling 0.1%.
This follows a trading session in Asia that saw the largest MSCI Asia-Pacific stock index outside of Japan hit its highest level since August 2018 before falling back to a 0.1% gain.
U.S. stocks had hit new record highs last night, but investors are now mostly positioned ahead of Powell’s speech, which will also coincide with more detailed second-quarter U.S. GDP numbers and initial jobless claims in the event. pandemic: it could be a bumpy opening on Wall Street later.
Naeem Aslam, Chief Market Analyst at AvaTrade, a trading platform, said:
There is an element of caution among investors as Fed Chairman Jerome Powell will deliver a speech on a monetary policy framework later today. The Dow Jones and S&P 500 futures are expected to experience higher volatility because of this. The future of the coronavirus stock market rebound depends heavily on the direction of the Fed’s monetary policy.
Investors in the oil market will also closely follow news from the Louisiana coast, where Hurricane Laura has just touched down. The force of the hurricane raised fears of significant human costs amid the pandemic, and it also forced a halt to oil production that rivals Hurricane Katrina 15 years ago.
Brent crude oil futures prices edged up this morning to $ 45.70 per barrel for the North Sea benchmark. The North American benchmark West Texas Intermediate prices are down slightly to $ 43.34 per barrel.
- 9h BST: Euro area M3 money supply, July (previous: 9.2%; consensus: 9.2%)
- 13h30 BST: US GDP second quarter second estimate (forecast: -5% annualized; versus: -32.5% annualized)
- 13h30 BST: Initial jobless claims in US, week ending August 22 (prev: 1.1m; vs.: 1m)
- 14 h 10 BST: Speech by US Federal Reserve Chairman Jerome Powell