The moves could be linked to a surprising reading of second-quarter GDP in Germany, Europe’s largest economy, which worked its way to a 0.1% gain for the three months ended July.
However, the reaction to that reading was dampened by a closely monitored survey of business expectations published by the Ifo Institute, which pointed to a sharp slowdown in the third quarter.
Here at home, investors will get a second estimate of Q2 GDP, which is estimated to have shrunk by 0.8%, as well as weekly unemployment claim data ahead of the start of trading, all of which are likely to factor into Powell’s thinking. — and speech — tomorrow in Wyoming at 10 a.m. GMT.
There’s a chance the Powell speech will focus a little more on quantitative tightening as a key driver from here rather than super-big rate hikes,” said John Hardy, Saxo Bank’s head of currency strategy.
“But for the most part, the market can simply be left to its own devices and default to where the cycle takes us: towards an impending catastrophe in Europe and the UK this winter and next year if energy prices remain somewhere within sight of current levels. ,” he added.
Meanwhile, the US dollar index was 0.34% lower against a basket of its global counterparts at 108.311, while two-year Treasury yields fell 3 basis points to 3.358%.
In overseas markets, Europe’s Stoxx 600 was up 0.34% on better-than-expected German GDP data, following a solid 1.96% overnight gain for the region-wide MSCI ex-Japan index in Asia after China unveiled a new $44. billion dollar stimulus package.
On Wall Street, the S&P 500 was 32.5 points higher in trading hours, while the Dow Jones Industrial Average gained 96 points. The tech-focused Nasdaq rose 128 points.
( shares rose 0.5% and were the most active stocks in early trading after the debut of the automaker’s three-for-one stock split on the Nasdaq. TSLA)
( shares fell 6.5% after the enterprise software group lowered its full-year revenue forecast after stronger-than-expected second-quarter results. CRM)
( stocks, meanwhile, gained 1.9% after the chipmaker posted a weaker-than-expected second-quarter gain on Wednesday and forecast more weakness in the gaming sector in the coming months. NVDA)