Monetary policy issues in particular have been the focal point of discussion over the past few days. Fears of interest rate cuts in the US were fueled above all by encouraging Fed minutes on Wednesday evening. A highly anticipated speech by Fed Chairman Jerome Powell at the annual central bankers' meeting in the US state of Wyoming is likely to conclude the week and also provide the highlight.
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EU core inflation remains at 2.9 percent - Fed notes fuel interest rate cut fantasies
In a trading week that was manageable from the point of view of the economic data calendar, however, there were important economic data from time to time.
The previously estimated core inflation rate for the eurozone was confirmed at 2.9% on Tuesday, following 2.9% in June (year-on-year comparison).
Whether the European Central Bank (ECB) will be tempted to cut interest rates again in September remains questionable.
At midweek, investors focused on the transcripts of the latest Fed meeting. According to the transcripts, an "overwhelming majority" of Fed members consider a rate cut in September to be appropriate as long as the economic data is in line with expectations.
Purchasing managers give a mixed picture - US initial jobless claims rise again
Numerous purchasing managers were published on Thursday. At 48.5 points, the widely observed PMI index in Germany had noticeably disappointed expectations (49.2 points). However, the equivalent index for the eurozone remained above the growth threshold of 50 units at 51.2 points.
In the USA, the data in question again signaled an upturn, which at least temporarily eased economic concerns.
Meanwhile, the number of initial applications for US unemployment benefits rose again slightly last week, as the US Department of Labor announced on Thursday. A total of 232,000 citizens filed a corresponding application, after 230,000 units had been expected in advance. The four-week average thus stands at 236,000 applications. The threshold of around 270,000 units is considered critical, which can be seen as a negative trend reversal on the labor market.
Investors eagerly await Powell speech and hope for interest rate cut signals
A speech by Fed Chairman Jerome Powell this afternoon (16:00), who is scheduled to give a speech at the ongoing economic symposium in Jackson Hole (Wyoming), is likely to decide the weal and woe. It remains to be seen whether Powell will be persuaded to make any statements about possible interest rate cuts at the upcoming September meeting. Some of his colleagues have recently spoken out in favor of turning the notorious interest rate screws.
In the ongoing reporting season, things are likely to get exciting next Wednesday with the planned publication of new quarterly figures from chip manufacturer NVIDIA.
