Today there is lots of important economic data on the calendar that investors need to be wary of.
First of all, arguably the most important event today will be the Jackson Hole Symposium. It started yesterday, but today is when Federal Reserve Chair Jerome Powell will give a speech, revealing what the Fed has planned for monetary policy over the next couple of months.
The expectations regarding the outcome of the symposium are a bit mixed. Initially, most everyone was betting that the Fed will announce the end of asset purchases in the near future. However, the recent spike in Covid-19 cases across the United States is now making some economists a bit pessimistic, which could influence the Fed’s decision.
In Europe, data on consumer confidence in France and business confidence in Italy for the month of August was disappointing. However, consumer confidence in Italy was better than the forecast.
The bulk of relevant economic data will come from the United States later today. Aside from Fed Chair Jerome Powell’s speech, we are also waiting for the PCE and core PCE price indices for July. They are going to be released only a little bit before Powell is set to speak, so will most likely not influence the outcome of the Jackson Hole Symposium.
In addition, the final Michigan consumer sentiment survey for August will also be published later today.
US stock indices today will trade slightly higher before Powell’s announcement; their movement afterwards will depend on what the Federal Reserve’s Chair actually says.
Markets in China are even more volatile after the government announced a new set of regulations to further tighten control over the country’s vibrant digital sector. The rules are aimed at protecting sensitive information and limiting the power of algorithms to encourage ‘addictive’ behavior among consumers.
Meanwhile, the conflict in Afghanistan continues. US President Joe Biden promised retribution after numerous Afghan civilians and at least 13 US soldiers were killed in a bombing attack near the airport in Kabul. The evacuation of foreign citizens and their Afghan allies continues. The deadline is this coming Tuesday and many are beginning to have doubts that everyone will be able to safely leave the country by then.
