European Shares Seen Up After Powell Remarks
European stocks may follow their U.S. and Asian peers higher on Monday after Federal Reserve Chairman Jerome Powell said the U.S. economy is “strong” enough to handle more normalization of policy.
Speaking at the Fed’s annual symposium at Jackson Hole, Wyoming, he also hinted that risk factors abroad could lead to a different policy response.
Gold edged up and the dollar fell broadly following comments from Powell in support of a gradual approach to raising rates. The Chinese offshore yuan hit a one-month high after the country’s central bank adjusted its daily “fix” formula.
Asian stocks remain broadly higher as Powell’s comments gave markets a breather from simmering trade tensions.
After U.S. President Trump accused Beijing of not helping on denuclearization of North Korea, China lodged a diplomatic protest with the U.S., saying his accusations were “irresponsible” and he was “passing the buck.”
Benchmark U.S. crude futures dipped slightly in Asian trade after climbing
1.3 percent to settle at $68.72 per barrel on Friday amid signs of slowing American drilling.
U.S. stocks rose on Friday on economic optimism after Fed Chairman Jerome Powell reiterated the central bank’s stance that further gradual increases in interest rates will likely be appropriate in view of strong growth in income and jobs.
The Dow Jones Industrial Average rose half a percent, the tech-heavy Nasdaq Composite advanced 0.9 percent and the S&P 500 added 0.6 percent.
European markets also ended broadly higher on Friday after reports that U.S. President Donald Trump could buy some of Italy’s debt.
The pan-European Stoxx Europe 600 index finished marginally higher, while the German DAX, France’s CAC 40 index and the U.K.’s FTSE 100 all edged up around 0.2 percent.
by RTTNews Staff Writer
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