Markets

European Shares Seen Opening Mixed Ahead Of Powell's Speech

(RTTNews) - European stocks are likely to open mixed on Thursday as investors await Federal Reserve Chair Jerome Powell's live-streamed speech at the Jackson Hole economic symposium due later in the day for directional cues.

Analysts have suggested Powell will signal an increased tolerance for higher inflation, with some predicting he will call for a shift to "average inflation" targeting rather than the long-standing 2 percent target.

Asian markets are trading mixed as U.S.-China tensions escalated over the South China Sea. Beijing fired four missiles into the waters around the same time as the Trump administration blacklisted some Chinese firms and imposed visa restrictions on company executives accused of involvement in the South China Sea.

Gold edged lower after rising more than 1 percent in the previous session and the dollar also eased, while oil steadied as Laura approached the Gulf Coast as a Category 4 hurricane.

The European Central Bank publishes euro area monetary aggregates data for July later in the day.

Across the Atlantic, Powell's highly anticipated speech could overshadow reports on weekly jobless claims, second quarter GDP and pending home sales.

U.S. stocks rose overnight as a bigger than expected leap in durable goods orders for July pointed to an economic recovery and Moderna announced promising results from a small trial of its coronavirus vaccine candidate in elderly patients.

The Dow Jones Industrial Average edged up 0.3 percent to a six-month closing high, while the tech-heavy Nasdaq Composite surged 1.7 percent and the S&P 500 climbed 1 percent to reach fresh record closing highs.

European stocks moved higher on Wednesday as Germany extended its coronavirus stimulus package and the French government said it would present its 100 billion euro stimulus plan next week.

The pan European Stoxx 600 advanced 0.9 percent. The German DAX climbed 1 percent, France's CAC 40 index rose 0.8 percent and the U.K.'s FTSE 100 edged up 0.1 percent.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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