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Jackson Hole and Nvidia take centre stage

This week, global markets focus on the Jackson Hole symposium, which runs from Thursday through Saturday, with Federal Reserve (Fed) Chair Kevin Warsh delivering the keynote address on Friday. Investors will scrutinise his remarks for signals on monetary policy and balance-sheet management against a backdrop of ongoing Fed reserve-management purchases and the US Treasury’s separate expansion of its debt-buyback programme. On Wednesday, US Personal Consumption Expenditures (PCE) inflation and the second estimate of second-quarter gross domestic product (GDP) provide fresh insights into price pressures and economic growth. Nvidia, the world’s largest listed company, reports fiscal second-quarter results after the US market closes on Wednesday, offering an important gauge of the health of the AI infrastructure build-out. Elsewhere, Tokyo and French inflation, German labour-market figures and Canadian gross domestic product are released on Friday.

  • Date
  • Author Shane Strowmatt, Senior Investment Writer
  • Reading time 5 minutes

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Gold traded near a three-month high on Monday after the US Treasury’s plan to increase buybacks of long-dated bonds revived concerns over the US dollar and government debt. Gold rose 0.7% to around USD 4640 per ounce, following a 5% gain last week after the Treasury said it would double long-end debt buybacks to USD 4 billion per operation. Bitcoin likewise rose 1.3% to around USD 77,100. The US dollar remained near multi-month lows as investors assessed the Treasury measure’s implications for bond yields and awaited details of potential US sanctions on Iran. Brent crude oil futures fell 1.5% to USD 91.24 per barrel, while West Texas Intermediate (WTI) futures declined 1.7% to USD 85.57 per barrel.

Asian technology shares fall sharply

Asian equities declined on Monday as technology stocks sold off ahead of Nvidia’s quarterly results on Wednesday and Fed Chair Kevin Warsh’s Jackson Hole speech on Friday. Korea’s KOSPI fell 3.2%, led by a drop in Samsung Electronics after investors were disappointed by its planned shareholder returns, while Hong Kong’s Hang Seng Index lost 2.1% as Alibaba plunged almost 10%. Alibaba’s decline followed its HKD 80 billion share placement to finance AI investment. Australia’s S&P/ASX 200 bucked the regional trend, gaining 0.4% as fuel retailer Ampol’s first-half underlying net profit surged 376% to AUD 857.2 million amid higher refining margins. Japan’s Nikkei 225 slipped 0.5%.

US stocks rebound on commodity gains

US equities recovered on Friday, with the Dow Jones Industrial Average rising 1% to 53,277.01 points after reaching its lowest level since early August the previous day. The S&P 500 gained 0.4% to 7,674.37 points and the Nasdaq-100 advanced 0.3% to 29,308.86 points, although the indices still fell 0.8%, 1.4% and 2.5%, respectively, last week. Gold miners and copper producers rose as bullion prices climbed and copper supplies tightened, while oil prices remained elevated amid the Iran conflict and disruption to shipping through the Strait of Hormuz. Cryptocurrency-related shares also rallied alongside bitcoin, with Robinhood Markets jumping 13.7%.

Euro-area PMI edges higher

Euro-area private-sector activity strengthened slightly in August, with the composite Purchasing Managers' Index (PMI) rising to 52.1 from 52.0 in July, S&P Global reported on Friday. Manufacturing drove the improvement, as its PMI increased to 52.8 from 51.9 and output growth reached its fastest pace since May 2022, while services activity held at 51.7 points. Germany recorded modest overall expansion, whereas France’s private sector contracted again; activity elsewhere in the euro area grew at its quickest pace since April 2022. The Euro Stoxx 50 gained 0.6%, while Germany’s DAX and Switzerland’s Swiss Market Index each rose 0.6%. France’s CAC 40 advanced 0.4%.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: There are no major macroeconomic data points scheduled today.

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Editor: Alessandro Fezzi
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