Global markets showed mixed performance on Friday as investors awaited a highly anticipated address by US Federal Reserve Chairman Jerome Powell at the annual Jackson Hole symposium in Wyoming. The speech is expected to provide clarity on the outlook for US interest rates, with traders weighing the possibility of cuts as early as September.
Asian markets ended the day on a mixed note. Tokyo’s Nikkei index edged up 0.1 percent, rebounding slightly after Thursday’s 0.7 percent drop, while fresh data showed Japan’s core inflation eased to 3.1 percent in July from 3.3 percent in June — still above the central bank’s two-percent target, fueling speculation of a rate hike later this year. Shanghai’s Composite Index climbed 1.5 percent to break the 3,800 mark for the first time in a decade, buoyed by gains in semiconductor giant Cambricon. Hong Kong, Seoul, and Bangkok also advanced, while Sydney and Taipei slipped.
European trading opened cautiously, reflecting global uncertainty. London’s FTSE 100 dipped 0.1 percent, and Frankfurt’s DAX edged lower, while Paris managed a modest gain. Analysts said markets were holding back ahead of Powell’s comments, with Chris Weston of Pepperstone noting that Asia might serve as a “safe harbour” while investors gauge the Fed’s credibility. Still, Weston added there was only a “very low probability” that Powell would explicitly endorse rate cuts in his speech.
Beyond monetary policy, geopolitical developments also weighed on sentiment. Hopes for a breakthrough in Ukraine peace talks resurfaced after former US President Donald Trump set a two-week deadline to evaluate negotiations involving Moscow and Kyiv, alongside consultations with European leaders. The possibility of easing sanctions on Russia has kept energy markets on edge, with oil prices climbing modestly. Brent crude rose 0.2 percent to $67.78 per barrel, while West Texas Intermediate gained 0.2 percent to $63.66.
Currency markets were similarly cautious. The euro slipped slightly to $1.1592, the pound edged down to $1.3410, and the dollar strengthened against the yen at 148.60. On Wall Street, the Dow closed down 0.3 percent at 44,785.50 on Thursday, after a volatile week of trading. Investors now look to Powell’s remarks for fresh direction as markets balance optimism over technology-driven growth against persistent inflation concerns and geopolitical uncertainty.
