A consensual takeaway from Federal Reserve Chairman Jerome Powell’s remarks at the Jackson Hole Symposium is that investors will be able to dirty dance to the beat of the Fed’s $120 billion monthly asset purchases for just a little bit longer.
Like all things, the current bull market must come to an end someday. But investors who feared that moment could have been last Friday can sigh in relief even if September is typically the trickiest month of the year for Wall Street.
There seems to have been no second thoughts or buyer’s remorse over the weekend with Asian bourses on the rise this morning and the dollar index falling to a two-week low.
Wall Street futures are ticking up and European bourses are set to open slightly in positive territory. Britain is closed for a bank holiday.
There’s still plenty of fears around that the rally is running out of steam and that resurgent inflation might force reluctant policymakers to pull the plug on quantitative easing in a disorderly way.
In the meantime though, the yield on the benchmark 10-year U.S. Treasury note is at 1.3%, down from last week’s two-week high of 1.375%.
In the eurozone, where the economy is bouncing back amid trillions of euros worth of monetary and fiscal stimulus, labour shortages and production bottlenecks, German 10-year bonds yield -0.42% .
Oil prices pared early gains on Monday, off more than three-week highs reached earlier in the session as a powerful hurricane ploughing through the Gulf of Mexico forced shutdowns and evacuations of hundreds of offshore oil platforms.
Gold is steady, with the spot price at $1,816.2 per ounce, down 0.1%, having touched its highest in three weeks earlier in the session.
The FTSE MIB climbed up by 0.16% to 26,057.30. In the cash markets, the DAX Germany was trading up 0.16% to 15,876.65. CAC 40 in France rose by 0.09 % to 6,687.22 while the FTSE 100 in the U.K. were up by 0.32% to 7,148.35. ,at the time of writing.