Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European indexes traded slightly lower. Attentions are now turned to the symposium of central banks in Jackson Hole. The current president of the Fed, Janet Yellen, is back to participate in the meeting, after the absence that marked the same event last year. Her speech is scheduled for today. On the other hand, according to the public agendas of the European Central Bank and the Bank of England, the two officials have no scheduled participation. Benoit Coeuré, ECB executive committee member, will be participating as a substitute, in the conference which will be held on Saturday, August 27th. Representing Mark Carney will be Minouche Shafik, Deputy Governor of the Bank of England. Meanwhile, oil prices have recovered, even after the Minister of Saudi Energy have calmed down expectations of a strong market intervention by major producers in the talks that will take place next month.
The US stock market returned to close down, reflecting the caution that investors have chosen to take in anticipation of the Jackson Hole Conference, as well as the pharmaceutical sector behavior. In fact, all eyes this week have been focused on the Central Bank conference in Jackson Hole, whose theme this year is “Designing for the future a resilient monetary policy framework.” This event takes place a few weeks before the next meeting of the Fed, scheduled for September 21, and its strong reputation stems from Ben Bernanke, the former President of the Federal Reserve, announced during this conference important changes to the pace of its monetary policy. Will be from the words of Janet Yellen in Jackson Hole that investors and analysts will form new short-term expectations, and later will or not be confirmed at the meeting of the Fed scheduled for 20 and 21 September. Yellen will be challenged to prepare the markets for a possible postponement of the normalization of monetary policy in 2016 and the possibility of increases in interest rates in 2017. In yesterday’s session, the pharmaceutical sector also contributed to the selling pressure that was found on the market , arising from comments made by Hillary Clinton on drug prices. The Mylan shares extended losses from the previous day, but with a more restrained devaluation. The macroeconomic plan was published that orders for durable goods rose by 4.40% in July, above the expected growth 3.40% and after reading the magazine on June which showed a drop of 4.20%. Excluding automobile orders, this indicator recorded an increase of 1.50%, also higher than the 0.40% expected. Regarding the labor market, the number of weekly applications for unemployment benefits fell to the lowest of the past five weeks, confirming once again the strength of this market. This indicator fell in 1000 to 261,000, less than the 265,000 expected. Macroeconomic agenda today reported the publication of GDP for the 2nd quarter and the consumer confidence indicator measured by the University of Michigan. On average, economists estimate a 1.10% growth for the US economy in the 2nd quarter.
Asian markets close in different directions, but with little sharp movements, reflecting the nervousness that exists in international markets in anticipation of the Central Bank Symposium beginning today. In Japan, the appreciation of the Yen penalized the performance of the leading exporters such as automakers