European Markets Stagnate Amid Fed Uncertainty
European stock markets experienced minimal declines as traders await key developments from the Federal Reserve's Jackson Hole symposium, where significant decisions affecting interest rates may arise. Market sentiment remains cautious, with concerns over tariffs and inflation impacting investor strategies. U.S. stock futures and the U.S. dollar showed mixed movements.
European stock markets saw minor declines in early trading on Thursday, as investors held back ahead of the Federal Reserve's Jackson Hole symposium. The event, which begins Thursday, has market players eagerly anticipating Fed Chair Jerome Powell's Friday speech for potential clues on a September rate cut.
Tim Graf, State Street Markets' head of macro strategy for EMEA, noted the cautious stance among traders. He highlighted "known unknowns" including economic impacts from tariffs and possible inflationary pressures that could influence the Fed's decision-making process heading into September.
In the U.S., stock futures were mixed following a tech sector selloff spurred by risk aversion and profit-taking. Meanwhile, geopolitical events added to uncertainty, with President Trump's call for a Fed official's resignation and market reactions to perceived threats to central bank independence.
(With inputs from agencies.)
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