European Markets Wrap: Dollar Steadies, US Futures Rise as Traders Await Jackson Hole
Key Takeaways
- •Investors were largely inactive as markets positioned for Fed Chair Warsh’s keynote address at Jackson Hole on Friday.
- •Nvidia’s earnings beat lifted pre-market shares and helped push US equity futures higher, especially in technology stocks.
- •ECB accounts pointed to upside risks to inflation, while ECB policymaker Radev said October and December meetings remain open and data-dependent.
- •Reports said the US administration is considering another round of tariffs on semiconductors.
- •Gold traded slightly higher after an earlier intraday peak, as traders kept an eye on Jackson Hole for policy signals.
Headlines:
Gold bulls on edge ahead of Fed Chair Warsh speech at Jackson Hole
US futures hold higher, bolstered by Nvidia earnings
Policymakers concluded that risks to the inflation outlook are tilted to the upside - ECB accounts
ECB's Radev says October and December meetings remain 'live', policy to be guided by economic data
BOJ policymaker Himino says won't comment on market expectations on rate hike
Will Warsh play it cool and let Bessent take the wheel for now?
US administration reportedly mulling over fresh round of tariffs on semiconductors
Germany consumer sentiment set to improve further going into September
Markets:
AUD leads, GBP lags on the day
European equities mostly lower; S&P 500 futures up 0.4%
US 10-year yields down 0.5 bps to 4.658%
WTI crude oil up 0.3% to $82.50
Gold up 0.1% to $4,595
Bitcoin up 1.3% to $79,479
There was little action in markets on the session, with investors gradually positioning for Fed Chair Warsh's keynote speech at Jackson Hole tomorrow.
That address is expected to be the main event of the week’s close, leaving traders and investors cautious and somewhat subdued in trading so far today. With recent ECB accounts pointing to upside risks to the inflation outlook and Radev saying October and December meetings remain "live," policy messaging on both sides of the Atlantic is keeping attention on upcoming central bank signals rather than on fresh macro data alone.
The US dollar is broadly steadier, with only modest moves across major currency pairs. EUR/USD is down 0.1% at 1.1638, USD/JPY is up 0.1% at 159.48, and AUD/USD is up 0.2% at 0.7180.
Risk appetite is holding up as US futures are supported by Nvidia's earnings beat from yesterday. Nvidia shares are up nearly 6% in pre-market trading, helping lift S&P 500 futures by 0.4% and Nasdaq futures by 0.9% on the day.
European equities, by contrast, are not as firm, with most major indices starting the morning lower. Germany's consumer sentiment reading for September is set to improve further, offering a modest domestic backdrop as broader regional markets stay focused on policy guidance and external headlines.
Among the day's headlines, Trump was reported to be considering a fresh round of tariffs on semiconductors, though that has not weighed on tech shares during the session.
Elsewhere, Treasury markets remain largely directionless, while gold is slightly higher at $4,595 after reaching an intraday high of $4,642 earlier in the day. The metal is still trying to preserve some upward momentum ahead of Jackson Hole as markets head into what looks set to be a tense finish to the week.
