Weekly Market Review – August 22 − 26 2016
Jackson Hole Symposium will be this week’s main event
Last week the FOMC Meeting Minutes were published, which was week’s main market driver.
On Tuesday the Eurozone Services and Manufacturing PMIs will be published, with the US Durable Goods Orders scheduled for Thursday. This week’s main event this week is the Jackson Hole Symposium (Central Bank Governors’ Meeting), scheduled for the 25-27.
Last week oil prices and a slew of economic data impacted the US stock markets. The US economy clearly improved, with the only setback being inflation.
Meanwhile, stronger oil prices provided key support for the US stock markets including the S&P 500.
European stock markets spent the past week caught in a downwards trend thanks to profit-taking after a strong rally. Traders are still worried about the state of the EU economy post-Brexit. Additionally, last week there were a series of weaker earnings reports, and some of the top gaining sectors, such as the mining sector have fallen.
Gold traded with mixed results last week as Federal Reserve Vice Chairman Stanley Fischer signaled that a 2016 rate hike is still under consideration. He mentioned the U.S. economy is already close to meeting the Fed’s goals and that growth will continue.
This week traders will pay a lot of attention to Janet Yellen’s speech Aug. 26 at the annual Jackson Hole Symposium, which will undoubtedly impact the precious metal.