European stock markets edged lower on Thursday morning, falling just below their highest levels in five months. Investors remained cautious ahead of the Federal Reserve’s (Fed) Jackson Hole meeting.
As the meeting begins today, markets are focused on Fed Chairman Jerome Powell’s speech on Friday.
The speech could give critical signals regarding a possible interest rate cut in September.The STOXX 600 index fell 0.2%, the London FTSE 100 and Germany DAX fell 0.1%, and the France CAC 40 fell 0.4%. The MSCI World Index also ended the day down 0.1%.
In the US, Nasdaq futures remained flat, while the S&P 500 traded down 0.1%. For the past two days, selling pressure continues in technology stocks due to profit-taking and concerns about high valuations. On the bond side, the German 10-year yield rose to 2.73%, while the US 10-year Treasury yield increased to 4.31%. The dollar index rose 0.2% to 98.22, while the euro remained stable at 1.1653. Gold prices fell slightly to $3,340 per ounce, while oil rose on strong demand signals from the US.
