📆 Thursday, August 22
► European stocks edged higher with the Stoxx 600 index rising near 0.5%, supported by a rally in Deutsche Bank, which predicted a boost to its third-quarter results. However, sentiment was mixed in Germany as Germany's flash PMI data showed the private sector in contraction, with the composite PMI at a five-month low of 48.5. Meanwhile, France's flash PMI numbers indicated strong expansion in services, reaching a 27-month high. Also PMI data from the UK and the Eurozone as a whole improved significantly. Overall, cautious risk on mood prevailed as markets anticipated key events from the Federal Reserve and the Bank of Japan.
► US markets ended Wednesday on a higher note after the Fed meeting minutes revealed that several officials supported a September rate cut if inflation continues to slow. In addition to this, the significant downward revision to US job growth strengthened the case for a rate cut next month, further fueling market speculation. However, traders are still wary of potential surprises from Powell’s upcoming remarks. Yields on 10-year US Treasuries held steady at 3.79% after edging further down yesterday, while the USD showed little movement after recent sell-offs.
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