The U.S. Federal Reserve’s annual conference in Jackson Hole could set the further tone for markets later this week
Wall Street stocks rallied on Friday to trim weekly losses ahead of the weekend. The S&P 500 gained 0.80% and is now less than 1% from the all-time high. The Dow Jones and the Nasdaq Composite advanced 0.65% and 1.19%, respectively. However, both indexes posted weekly losses amid the persistent worries about the coronavirus delta variant.
Following suit, Asian markets jumped on Monday, with Japan’s benchmark Nikkei 225 rallying 1.78% while the Shanghai Composite in China added 1.45%. The U.S. Federal Reserve’s annual conference in Jackson Hole could set the further tone for markets later this week.
In Europe, equities opened higher after recording their worst week since February, with the pan-European Stoxx 600 up 0.2% by mid-morning. US stock futures were higher in early premarket trading. On the data front, IHS Markit’s flash composite PMI for the Eurozone hit a two-month low of 59.5 in August versus 60.2 in July. The report capped gains in regional stocks.
As risk sentiment has improved, the dollar retreated nearly across the board to start the week. EURUSD bounced back above the 1.1700 figure to notch local highs around 1.1730 but is yet to confirm the reversal on a daily closing basis. Later today, strong US PMIs could lend support to the greenback.
Elsewhere, bitcoin price climbed above the $50,000 figure for the first time since mid-May after PayPal said it will let British customers buy, hold and sell digital currencies, starting this week. Available on both its app and website, the service will initially be limited to four cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
