LONDON – European markets fell silent on Friday as caution prevailed over statements by U.S. Federal Reserve Chairman Jerome Powell at the annual Jackson Hole symposium.
The pan-European Stoxx 600 circled the flat line until late in the morning, with basic resources rising 0.8%, while travel stocks fell 0.6%.
The European Blue Chip Index began Friday’s session almost unchanged from where the week began, with animation markets suspended ahead of the Jackson Hole meeting.
Markets in Asia-Pacific mixed similarly on Friday, while US equities futures rose fractionally after Thursday’s major Wall Street indices hit multi-day winning streaks.
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Investors around the world will watch Powell’s speech for details on how and when the central bank could try to reduce its monetary stimulus measures.
Alan Levenson, chief U.S. economist at T. Rowe Price, said markets should not expect big surprises from Powell’s speech, nor a diversion from previous Fed messages, which is likely to begin to shrink to end of this year or beginning of the 22nd, depending on economic conditions.
“In my opinion,‘ prior notice ’will come to the conclusion of the FOMC meeting on 22 September, followed by the formal announcement on 3 November that the pace of asset purchases will slow in December, assuming that the Labor market recovery continues to meet Fed expectations, ”Levenson said.
“In this context, President Powell’s message will open the door to a ‘notice’ on September 22, without committing to any line of action.”
Events in Afghanistan are also on the radar, after the Pentagon confirmed on Thursday that explosions near Hamid Karzai International Airport in Afghanistan killed 13 members of the US service and injured 18. President Joe Biden has pledged to prosecute ISIS leaders responsible for the attacks.
In terms of economic data, French consumer confidence fell fractionally in August, the official statistics agency INSEE said on Friday. The monthly consumer confidence index fell to 99, from 100 in July.
Shares of Just Eat Takeaway fell 4.6% late in the morning to the bottom of the Stoxx 600, after the New York City Council approved a bill limiting restaurant fees charged for apps. delivery.
At the top of the index, the Swiss Siegfried added 2.6%.
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