Powell reiterated the central bank could dial back its asset purchase programme later this year
Wall Street stocks finished higher on Friday as investors cheered comments from the head of the U.S. Federal Reserve. Powell reiterated the central bank could dial back its asset purchase programme later this year. However, he also noted that the Fed will continue to monitor incoming data and adjust its policies as needed. Against this backdrop, the S&P 500 rose 0.88%, the Dow Jones Industrial Average climbed 0.69%, and the Nasdaq Composite gained 1.23%.
Today in Asia, equities were mostly higher, with market players digesting a dovish message from the Federal Reserve at the Jackson Hole symposium on Friday. However, investors remain anxious amid the coronavirus situation in the region. As such, Japan’s benchmark Nikkei 225 edged up 0.54%, Australia’s S&P/ASX 200 rose 0.22%, South Korea’s Kospi added 0.33%, and the Shanghai Composite in China climbed 0.17%.
European stocks traded marginally higher on Monday, with the pan-European Stoxx 600 index adding 0.1% in early deals. U.K. markets are closed for a public holiday. In his latest comments, the ECB Governing Council member Francois Villeroy said that “interest rates will remain favorable.” US stock futures were steady in pre-market trading.
In currencies, the USD index has settled in the lower end of the recent range below 93.00. The US currency is getting steady after a widespread sell-off witnessed ahead of the weekend. Later today, pending home sales and the manufacturing gauge released by the Dallas Fed are due. EURUSD challenged the 1.1800 figure earlier in the day before retreating marginally, suggesting the euro would need an extra catalyst to overcome this barrier despite the greenback is on the defensive.
Meanwhile, oil prices surged to nearly three-week highs around $72.40 before correcting lower. Brent crude retreated to the $71.35 area, with market focus shifting to the OPEC+ upcoming meeting due on September 1st. The OPEC and its allies are likely to maintain the oil output policies on Wednesday.
