European stock exchanges opened the session in positive territory with minimal variations. Milan gained 0.15%, in line with London, while Madrid was up by 0.30%. Markets are cautious due to the upcoming moves in US monetary policy. Yesterday, the release of the July minutes from the American central bank confirmed the likelihood of an interest rate cut in September. All eyes are now on the Jackson Hole meeting, a traditional gathering of bankers organized by the Federal Reserve in Wyoming. Today, the meeting opens, and tomorrow, Federal Reserve Chairman Jerome Powell will speak.
Among Asian stock exchanges, Tokyo was the most active thanks to the latest data on service sector purchases, which indicate continued economic expansion. The Nikkei index closed up by 0.6%. Chinese exchanges showed mixed results, with Shanghai in negative territory and Hong Kong recovering ground thanks to the rebound in technology and online commerce stocks. In the meantime, the price of oil continues to decline despite decreasing inventories. European Brent is trading at $76 per barrel, while American WTI is at $71.75.
The European stock market remained relatively stable, with minimal movements in major indexes such as Milan, London, and Madrid. The caution in the markets is attributed to uncertainties surrounding the future of US monetary policy, especially after the release of the July meeting minutes from the Federal Reserve. The confirmation of a potential interest rate cut in September has impacted market sentiment, leading investors to closely monitor the upcoming Jackson Hole meeting and Federal Reserve Chairman Jerome Powell’s statements.
In Asia, the Tokyo stock market was the most dynamic, buoyed by positive economic data indicating continued growth in the service sector. The Nikkei index ended on a high note, showing a 0.6% increase. By contrast, Chinese markets experienced mixed results, with Shanghai trading in the red and Hong Kong making gains due to a resurgence in technology and online commerce stocks. Despite declining oil inventories, the price of oil continues to drop, with Brent trading at $76 per barrel and WTI at $71.75.
Overall, the global economic landscape remains uncertain, with market movements influenced by upcoming events such as the Jackson Hole meeting and potential shifts in US monetary policy. European stock exchanges are treading cautiously amid expectations of an interest rate cut in the US, while Asian markets show mixed results with Tokyo outperforming its counterparts. The decline in oil prices, despite decreasing inventories, further adds to the complexity of the current economic environment. Investors are closely monitoring developments in key markets to navigate potential risks and opportunities in the coming days.
