Before the symposium of central banks in Jackson Hole, which begins on 26 August, optimism prevails on the stock exchanges in the USA and Europe, and investors do not avoid purchases.
The positive mood on the stock exchanges may have been fueled by the news that the U.S. Food and Drug Administration (FDA) has given its full approval to the Pfizer/BioNTech vaccine, raising hopes that vaccination will again gain momentum. Fears of an imminent reduction in stimulus from the Fed have also diminished, tied to the release of economic data that disappointed market expectations.
The FDA information seems to have contributed to setting new all-time highs on Wall Street, where futures contracts on S&P 500 and Nasdaq 100 were traded in the region of 4400 points and 15380 points, respectively.
Stock market bulls may be helped by decreasing concerns about the reduction of stimulation by the Federal Reserve. According to Reuters, the likelihood that Jerome Powell, head of the Fed, will indicate a timeframe for limiting the bond-buying program at a symposium in Jackson Hole is decreasing. The stock market sentiment may also be supported by the publication of Markit PMI data. They indicated a slower, but still strong growth in both services and manufacturing.
In the UK, FTSE 100 futures also appear to be rising ahead of Tuesday's summit of G7 leaders who will arrive in London to discuss the crisis in Afghanistan and the process of evacuating people seeking to get out of the country. Boris Johnson, the British prime minister who will chair the meeting, wrote on Twitter: "It is vital that the international community works together to ensure safe evacuation, prevent a humanitarian crisis and support the Afghan people to secure the gains of the last 20 years."
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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