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Markets pause before Warsh remarks

Investors awaited Federal Reserve (Fed) Chair Kevin Warsh’s Jackson Hole speech on Friday after stronger-than-expected US inflation reinforced uncertainty over the interest-rate outlook. Nvidia’s upbeat projections propelled technology shares and left Wall Street higher on Thursday, while European equities ended mixed. Asian markets showed little overall direction on Friday, as losses in Korean chipmakers offset gains in Japan and Australia.

  • Data
  • Autore Shane Strowmatt, Senior Investment Writer
  • Tempo di lettura 5 minuto

Fed interest rate pause
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Most Asian equity markets traded in a narrow range on Friday as investors awaited Fed Chair Kevin Warsh’s Jackson Hole address for guidance on US interest rates. Korea’s KOSPI fell 1.8%, with Samsung Electronics and SK Hynix declining as the post-Nvidia rally in chip shares faded amid concerns about elevated artificial intelligence (AI) valuations. Japan’s Nikkei 225 gained 0.3% after Tokyo inflation in August broadly met expectations and core price growth remained near the Bank of Japan’s 2% target. Australia’s S&P/ASX 200 rose 0.5%, Hong Kong’s Hang Seng Index added 0.3%, while mainland China’s CSI 300 fell 0.3%.

Nvidia lifts US technology shares

The Nasdaq-100 rose 1.4% to 29641.56 points on Thursday, recovering above its 50-day moving average after Nvidia issued a robust outlook, while the S&P 500 gained 0.7% to 7730.99 points and the Dow Jones Industrial Average added 0.2% to 53569.44 points. Nvidia shares surged 8.7% as continuing demand for AI computing capacity helped the chipmaker more than double quarterly revenue and net income, lifting Broadcom and Intel by more than 4% each. Salesforce, CrowdStrike and Okta also rallied after strong results or improved forecasts, while markets remained cautious ahead of Fed Chair Kevin Warsh’s Jackson Hole speech on Friday, following US inflation data that exceeded the Fed’s 2% target.

German consumer sentiment improves

Germany’s consumer climate is expected to rise to -26.6 points in September from a revised -29.4 points in August, according to NIM data released on Thursday. The improvement was driven mainly by income expectations, which climbed 16.2 points to 1.7, their highest level in six months, while economic expectations rose for a fourth consecutive month to -3.9. The Euro Stoxx 50 fell 0.7% on Thursday, while Germany’s DAX gained 0.3%. France’s CAC 40 and the Swiss Market Index declined 1.7% and 1.1%, respectively.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from BYD.

Economic data in focus: Jackson Hole Economic Policy Symposium continues, French Consumer Price Index (08:45), French gross domestic product (08:45), Swiss KOF Economic Barometer (09:00), German unemployment rate (09:55), euro-area consumer confidence (11:00), Canadian gross domestic product (14:30), University of Michigan Consumer Sentiment Index (16:00) and Fed Chair Kevin Warsh speaks (16:00).

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