Strong equities, weak Dollar and a stunning outlook

Important news for the week

• Wed, 28th, 03:30 CET        AU        Consumer price index.
• Thu, 29th, all day            DE        Prelim. consumer price index.
• Thu, 29th, 14:30 CET            US        Unemployment claims.
• Fri, 30th, 14:30 CET            US        Core PCE index.   

Powell speech

Markets remain positive after the hawkish message from Jerome Powell in Jackson Hole. He pointed out that rates will be cut, which caused stock markets to be positive again. It would be time to reduce rates as markets would see inflation figures coming down. Furthermore also similar comments followed from the ECB, which might be ready to cut rates in September as well. the generally market sentiment has hence seen positive momentum since.

Market talk

Stock markets remain strong and continue to push for higher levels. After the slight correction of the S&P 500 index the market might break to higher levels. Worth noting that also oil prices have found a strong support off the current USD 75.00 zone. With the Dollar remaining weak this positive trend might continue. Also rising tensions in the Middle East continue to cause positive momentum. The attacks on Lebanon from Israel will likely cause the region being further on alert. Crypto markets on the other hand might find some resistance for now. Bitcoin looks set to correct at the current resistance area.

Tendencies in the markets

• Equities positive, USD weak, cryptos sideways, oil positive, metals positive, JPY stronger.