Global stock markets held steady on Friday as investors awaited a highly anticipated speech from U.S. Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium. Powell is scheduled to speak at 14:00 GMT, with traders closely watching for any signals on the future of U.S. monetary policy. His remarks are under particular scrutiny this year as he faces sharp criticism from President Donald Trump, fueling concerns about political pressure on the Fed’s independence.
Expectations for a September rate cut have weakened after a surge in U.S. producer prices in July. Futures markets now price in a 66 percent chance of a 25-basis-point cut at the next Fed meeting, down from 85 percent a week earlier. Analysts suggest Powell may adopt a cautious stance, deferring decisions until further jobs and inflation data are released. Some market watchers also believe he may use the platform to reaffirm the importance of central bank independence, News.Az reports, citing Reuters.
The MSCI’s broadest index of global stocks was largely unchanged, while European markets edged higher and Wall Street futures rose slightly between 0.1 and 0.2 percent. In Asia, China’s CSI 300 gained 2.1 percent, supported by strength in the AI sector after DeepSeek unveiled an upgrade to its flagship model and Nvidia reportedly asked Foxconn to suspend work on its H20 AI chip, lifting sentiment for Chinese rivals.
On the currency front, the dollar index rose 0.1 percent, while the euro slipped 0.1 percent following data confirming that Germany’s economy contracted by 0.3 percent in the second quarter. The Japanese yen was on track for a 1 percent weekly decline despite inflation remaining above the Bank of Japan’s 2 percent target. BOJ Governor Kazuo Ueda is also expected to address the symposium this weekend.
Commodities softened, with Brent crude trading 0.2 percent lower at $67.5 per barrel after strong gains on Thursday, while gold eased 0.2 percent to $3,330.9 per ounce.
