US Equity Futures Rise Ahead of Powell’s Remark – Europe Market Wrap

Stocks rose in the run-up to Powell’s Jackson Hole address, as traders speculated on whether the Fed Chair would allow interest rate reduction.

S&P 500 futures jumped 0.5%, while Europe’s key shares benchmark rose 0.3%. The 10-year Treasury yield held constant at 3.85% as the currency fell.

Powell’s speech, scheduled for 10:00 EST, has been the main focus for traders all week, and markets fell on Thursday over fears he would send a hawkish message. At the same time, strategists predict moderate bond changes during the conference, while options traders anticipate small stock fluctuations in the coming days.

Bets on lower Fed rates have helped the market recover from its August collapse. Investors expect a 25 bps rate cut at the Fed’s September 17-18 meeting, but nearly a full percentage point reduction by year-end, according to futures markets.

Meanwhile, the Japanese Yen surged by up as 0.7% against the Dollar before trimming its gains. In responses to parliamentarians, BoJ Governor Ueda indicated that the central bank is still on track to raise interest rates if inflation and economic statistics remain consistent with its predictions.