The main European stock exchanges, including Piazza Affari, should start this first session of the week on parity, after the dovish declarations of the Federal Reserve chairman, Jerome Powell, who spoke at Jakcson Hole. Powell eased fears about an imminent tightening of the Fed’s monetary policy.
Although he acknowledged that a reduction in asset purchases (tapering) might be appropriate “this year”, Powell did not provide a specific timetable for the reduction of the US central bank’s stimulus measures, but ruled out that a possible tapering of the QE would imply a rate hike immediately following. He also pointed out that the Fed will remain cautious in any rate hike decision in an attempt to bring the economy back to full employment, reiterating that inflation is “transient”.
Against this backdrop, traders will closely follow US employment data, out this week, with the release of the ADP Private Sector Survey (Wednesday) and the Department of Labor monthly report (Friday).
Meanwhile, inflation in Spain and Germany and ongoing home sales in the United States will spread today. Please note that the London Stock Exchange will be closed to celebrate Bank Holiday.