It was a bearish day for the European majors on Thursday, which reversed Wednesday’s gains. The DAX30 fell by 0.71%, with EuroStoxx600 and CAC30 both declining by 0.64%.
FED Chair Powell’s highly anticipated speech from Jackson Hole failed to support the European majors. The FED’s new plans to support employment and inflation weighed on the banking sector, however.
While there were no stats from the Eurozone to consider, economic data from the U.S was a reminder of what lies ahead.
The general consensus is that the Eurozone economy is showing signs of stalling, with the U.S labor market recovery also hitting a speed bump.
Eurozone economic calendar. There were no material stats from the Eurozone to provide the majors with direction.” data-reactid=”27″>It was a particularly quiet day on the Eurozone economic calendar. There were no material stats from the Eurozone to provide the majors with direction.
The lack of stats left the focus on economic data from the U.S and FED Chair Powell’s speech from Jackson Hole.
Through the early part of the day, the European majors saw red as a result, with the markets apprehensive. Expectations were for the FED to lay out its new monetary policy approach on Thursday.
From the U.S
The continuing jobless claims fell from a downwardly revised 14,758k to 14,535k in the week.
For the European majors, it was FED Chair Powell’s speech that was the main event. There was no support, however, with the markets having largely anticipated the FED’s latest shift in policy.
Under the new framework, the FED will look to achieve an average 2% inflation rate over time. This would mean that the FED would allow inflation to offset periods of low inflation by hitting above 2% levels. The FED would also support strong labor market conditions and not allow for a fall from maximum levels.
The Market Movers
On the VIX Index
The S&P500 and Dow rose by 0.17% and by 0.57% respectively, while the NASDAQ ended the day down by 0.34%.
The Day Ahead
Eurozone economic calendar. Key stats include Germany’s consumer climate figures and French GDP, consumer spending and inflation figures.” data-reactid=”58″>It’s a busy day ahead on the Eurozone economic calendar. Key stats include Germany’s consumer climate figures and French GDP, consumer spending and inflation figures.
We would expect Germany’s GfK consumer climate and French consumer spending figures to have the greatest influence.
From the U.S, finalized August consumer sentiment figures and July personal spending and inflation numbers will also influence.
Speeches from the Jackson Hole Symposium and from the U.S administration will also need monitoring on the day.
In the futures markets, at the time of writing, the Dow was up by 44 points.
economic calendar.” data-reactid=”64″>For a look at all of today’s economic events, check out our economic calendar.
article was originally posted on FX Empire” data-reactid=”65″>This article was originally posted on FX Empire