Selective yield 0.15% in seventh straight session of declines ahead of Jackson Hole bankers meeting
Hands are still waiting for Jackson Hole. Investors remain cautious about risky assets and don’t want to move their portfolios until the main event of the week, which will take place Friday with the speech by Fed President Jerome Powell at the summer meeting of central bankers.
It won’t be easy for a more demanding audience than any other year. The grave mistake made by both the Fed and the ECB at the 2021 meeting is still very much in the minds of investors, showing their complete certainty that the rise in inflation would be temporary. So Powell, and the rest of the guests at the symposium, are also risking their prestige.
Despite the fact that inflation in the US appears to have peaked, having fallen to 8.5% in July, the market expects the Fed president to maintain an aggressive tone regarding the future of monetary policy. policy. Just this Thursday, it was confirmed that the world’s leading force shrank 0.1% in the second quarter of 2022, according to the data’s second estimate. In other words, it is confirmed to be already in a technical recession after the economy fell 0.4% in the first three months of the year.
The data didn’t directly impact stock markets, but it did affect investors’ doubts about Powell’s message. In Europe, the minutes of the last meeting of the European Central Bank (ECB) had a slightly more impact, with the Ibex-35 falling 0.15%, preventing the selective from closing above 8,200 points.
Specifically, the indicator will start tomorrow from 8,187 integers, with Solaria rising nearly 6%. Something that the decline of large stocks such as Inditex (-1.95%), Sabadell (-1.66%), CaixaBank (-1.43%) or Banco Santander (-1.13%).
The monetary organization acknowledges in the document that there were dissenting voices around the decision to raise interest rates by 50 basis points. Some board members warned that surprising the market could lead to greater disruptions and even a debt crisis that would be managed anyway with the planned buying mechanism to prevent it.
In the commodities market, on the other hand, the price of a barrel of Brent remains above 100 dollars, while the American West Texas is around 95 dollars.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
