European Shares Set For Cautious Open Ahead Of Powell Speech

(RTTNews) - European stocks may open on a cautious note on Friday, with Federal Reserve Chair Jerome Powell's comments at Jackson Hole, Wyoming, likely to be in the spotlight amid an otherwise quiet day on the economic front.

Stronger U.S. economic data and hawkish comments on inflation from Fed officials have led money markets to price a 70 percent chance of a September rate cut, down from 90 percent a week ago.

Powell is scheduled to speak at 10 a.m. New York time following remarks from several Fed officials.

Fed Bank of Cleveland chief Beth Hammack said Thursday during an interview that she wouldn't be willing to cut rates in September, based on the data available today.

Other Fed officials also struck similarly hawkish tone. Atlanta Fed President Raphael Bostic said he still sees just one rate cut this year as appropriate. Jeffrey Schmid, president of the Kansas City Fed, said he remains wary of inflation pressures in the economy.

Fed Chicago President Austan Goolsbee stated that the U.S. central bank has been getting mixed messages on the economy.

Asian markets were mixed as traders pared back wagers on imminent Federal Reserve interest-rate cuts and braced for Powell's speech.

Fed impendence concerns resurfaced after the U.S. Justice Department called for Federal Reserve governor Lisa Cook to be removed from her post in the latest escalation of the Trump administration's assault on the central bank.

President Trump's housing-finance chief, Bill Pulte, confirmed that he filed a criminal referral against her for alleged mortgage fraud made in 2021.

Treasuries were little changed after falling across the curve in the New York session. Japan's 10-year yields hit a 17-year peak after July core inflation came in at 3.1 percent, against an estimate for 3 percent.

The dollar was steady and gold ticked lower while oil steadied after two days of gains.

Overnight, U.S. stocks ended mostly lower as Walmart reported weaker than expected second quarter earnings and new data showed the number of Americans filing new applications for jobless benefits rose by the most in about three months last week, adding to signs of a slowing labor market.

On the contrary, U.S. business activity picked up pace in August and existing home sales posted a surprising rebound in July.

The S&P 500 dropped 0.4 percent to end lower for the fifth consecutive session while the tech-heavy Nasdaq Composite and the Dow both fell around 0.3 percent.

European stocks ended mixed on Thursday as U.S. and European Union officials announced a written framework for their long-discussed trade deal.

The pan European STOXX 600 ended flat after three days of gains. The German DAX edged up marginally and the U.K.'s FTSE 100 rose 0.2 percent while France's CAC 40 dipped 0.4 percent.