European markets are expected to see a positive start on Thursday, following the lead of Asian and US markets, as a decline in US bond yields eases global borrowing costs. The pan-European Stoxx 600 index closed Wednesday’s session up 0.4%, despite disappointing euro zone purchasing managers’ index figures and a decline in services activity.
Shares in Asia-Pacific rose on Thursday, with Hong Kong’s Hang Seng index taking the lead, after US artificial intelligence chipmaker Nvidia reported blockbuster earnings. This news also led to an increase in US stock futures during early premarket trade. Investors are now watching closely to determine whether the AI boom is simply hype or a long-lasting trend.
One major event that investors are eagerly awaiting is the comments from US Federal Reserve Chairman Jerome Powell on Friday at the conclusion of the central bank’s symposium in Jackson Hole, Wyoming. Wall Street hopes that Powell’s remarks will provide some clarity on the future path of interest rates.
Stock markets experienced a boost on Wednesday due to a decrease in yields on long-dated US Treasury notes, which in turn lowered borrowing costs. This decline in yields comes after they reached a 16-year high earlier this week, driven by concerns over persistent inflation and the potential for the Federal Reserve and other central banks to maintain tight monetary policies for an extended period.
Overall, the markets are showing optimism as global borrowing costs ease. Investors are closely monitoring key events and developments, such as Powell’s upcoming comments, to gain insights into the future trajectory of interest rates.
More detail via CNBC here… ( Image via CNBC )