Federal Reserve Chairman Jerome Powell’s upcoming speech at the annual central bank summit in Jackson Hole, Wyoming is also eagerly anticipated. Powell may provide more clues about the U.S. interest rate outlook. While some investors are expecting a hawkish message given strong U.S. economic data, others are betting on rate cuts next year.

The weaker-than-expected Euro Zone data and the possibility of rate cuts have raised doubts about further interest rate hikes by the European Central Bank (ECB) and the Bank of England. Traders have scaled back their bets on an ECB September hike.

Asian markets remained cautious due to the weakness in China’s economy and yuan, as well as gloomy factory readings from Japan. However, Nvidia’s earnings announcement, along with U.S. PMIs and revised payrolls data, is expected to provide more clarity on the global manufacturing sector.

Overall, the euro’s decline, the rebound in global stocks, and the upcoming speeches by Powell and the ECB signal a cautious market sentiment as investors navigate through economic uncertainties.

Sources:
– Reuters (Updates prices)
– Reuters (Updates prices)

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