European Markets Rise as Eyes Turn to Powell's Speech
European shares experienced a mild uptick, driven by anticipation around U.S. Federal Reserve Chair Jerome Powell's speech at the Jackson Hole symposium. Investors are eager for hints on possible monetary policy changes, particularly regarding interest rates. Various sectors, like automobiles and chemicals, showed positive movements amidst ongoing economic uncertainty.
European shares edged up slightly on Friday as traders keenly awaited insights from Jerome Powell, the U.S. Federal Reserve Chair, at the Jackson Hole symposium. The pan-European STOXX 600 index increased by 0.2% at 0856 GMT, gearing up for a third straight week of gains.
Regional exchanges remained largely positive, with Germany's blue-chip DAX rising 0.1% after an early dip. However, Germany faced economic strains with a revised contraction of 0.3% in the second-quarter economy, worsened by weak industrial production, according to the statistics office.
Investors anticipated Powell's address for guidance on a potential rate cut in September, following lukewarm statements from Fed officials. "Jerome Powell needs to balance market reassurance while acknowledging U.S. inflation concerns," noted IG Group's senior technical analyst, Axel Rudolph. Meanwhile, Poland's WIG index faced a substantial dip after the government proposed an increase in corporate tax.
(With inputs from agencies.)
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