Main Market Movers
Investors are in a wait-and-see mood this morning before key speeches from central bankers in Jackson Hole. Two of the most prominent central bankers, Federal Reserve chair Janet Yellen and European Central Bank president Mario Draghi will take the stage to discuss monetary policy.
Trading is mostly muted as investors await direction from central bankers.
The FTSE 100 has added 0.4% to its value while Germany’s DAX 30, a proxy of European sentiment has gained a study 0.25% in early morning trading.
US and Asian equities are less buoyant, trading mostly flat this morning.
Energy stocks got a boost from rising oil prices. A hurricane, due to hit the Texas coast, has ignited concerns that oil production may be disturbed. The threat has spurred a rally in oil prices.
Oil prices are gaining ground as Hurricane Harvey steers towards the US. Crude oil has added 0.4%, while the international benchmark, Brent Oil, added 0.6% to its value.
With upward moving averages there could be more bullish tones to come today.
Gold is reeving up to outperform stocks for the first time in almost in six years, as the safe-haven commodity illustrates the uncertainty surrounding this year’s equity rally.
Today, gold is barley budging as the precious metal stays on pause ahead of the Jackson Hole addresses from central bankers.
From a technical stand point, gold could inch higher today thanks to an upward sloping moving averages curve. On the other hand, momentum indicators are slipping slowly downwards although they have not crossed into overbought territory.
Foreign exchange movements are limited this morning.
German import prices fell to -0.4% and German corporate confidence dropped in August sending the euro 0.04% weaker.
The dollar is flat as it awaits Janet Yellen’s speech later this evening (17:00 GMT)
We may see bullish movements as the session continues as we see the moving averages curve tip. We have a resistance level at the 1.182 mark. However, the pattern is still forming.