The new issue of “Opportunities on the Stock Exchange “the fortnightly dedicated to financial advisors and stock market experts.
The most anticipated event of the past week was the annual symposium which was held in Jackson Hole from 25 to 27 August. In his speech, the Fed chairman, Jerome Powell, confirmed the US central bank’s commitment to stop inflation by continuing to raise interest rates. “Price stability is the responsibility of the Fed and serves as the foundation of our economy,” Powell said, adding that “without price stability, the economy works for no one.” In addition, the Fed chief stressed that higher interest rates are likely to persist “for some time,” as top 40-year inflation strongly warns against premature easing of monetary policy. The reaction of the markets that have eliminated all the gains of the previous sessions is violent.
Meanwhile, expensive energy continues to hold its own in Europe with the price of gas shot further up. The contract of Dutch TTF gasEurope’s benchmark has risen to over € 330 per megawatt hour as a three-day suspension of Russian deliveries to Germany via the Nord Stream 1 pipeline approaches, fearing Moscow will not reopen the taps later.
This week will feature a series of macro data that will be decisive in driving the decisions of the ECB and the Fed in the next meetings in September. In fact, in the Eurozone we will have the publication of the preliminary inflation data for August (Wednesday), which is expected to accelerate slightly. Barring a definite downside surprise, according to analysts the figure should consolidate expectations of a 50 basis point rise by the ECB at the meeting on 8 September. In the US, on the other hand, we will have the publication of labor market data for August (Friday) which, if they turn out to be in line or better than expected, could lead the market to fully price a 75bp hike by the Fed at the meeting on September 20-21.
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