European stocks were gaining on Friday ahead of a speech from Jerome Powell at 1400 GMT that has been anticipated by investors all week.
Deutsche Bank said the market had lowered the chances of a 50 basis point cut to 25% from 36%, amid comments made by other Fed officials at the Jackson Hole conference, as well as the latest economic data.
Swissquote Bank agreed that Powell could push back on expectations for aggressive interest-rate cuts as there is no reason for this in the absence of a severe economic slowdown, market stress, or crisis.
U.S. Markets:
Stock futures were rising after falls yesterday and bond yields were steady.
Stocks to watch
Skydance Media accused Paramount's special committee of directors of breaching the terms of its deal by extending the period when it can engage with other bidders for the company, WSJ reported. Paramount shares fell 1.4%.
Tesla 's head of finance operations left the company, marking a further changes in leadership after several denatures.
Workday published a new long-term outlook. Shares rose 11%.
Forex:
EUR/USD has potential to rally further, according to the weekly chart, UOB's Global Economics & Markets Research said.
To sustain its strong momentum, EUR/USD should ideally stay above 1.0950, which was its triangle breakout level, with key weekly support lower at 1.0860.
The next key level to watch is the 2023 high of 1.1275, it added.
In the short term, Powell's speech at Jackson Hole is likely to have little impact on the dollar, Commerzbank said.
"The memory of the recent market turmoil is still fresh, so he will likely make efforts to keep markets calm," it said.
"However, given the dollar's weakness in recent days, this alone may be enough to provide some support for the dollar."
Sterling's gains are partly due to the dollar's weakness, which looks overdone, according to Swissquote Bank.
"The U.K. economy has been performing better than the major peers so far this year, and that's a blessing for the pound that hasn't seen the daylight since Brexit," it said.
"But be careful, a part of the shine is due to the dollar selloff, which is likely exaggerated and calls for correction."
BOE Governor Andrew Bailey's speech at Jackson Hole could be a non-event for sterling --as he might say very little about interest-rate cuts, ING said.
The yen could strengthen in the near-term on expectations for further interest rate rises by the BOJ, but the currency might weaken in the longer run if inflation remains subdued, Commerzbank said.
Bonds:
Eurozone bond and gilt yields were relatively steady ahead of Powell's speech, something rates markets have been looking out for the entire week, ING said.
Energy:
Oil prices continued to rise, after prices staged a recovery on Thursday, breaking a four-day streak of declines which had pushed the market towards oversold territory, ING said.
OPEC+ will still be concerned about the recent weakness in the market and it is increasingly likely that the group will have to ditch plans to start raising supply from October, it added, however, it will depend on where the market is trading toward the end of September.
Metals:
Gold partially recovered from a sharp sell-off late in the Thursday European session on likely profit-taking.
Its price remains elevated, up 17% in the year to date, despite Thursday's decline--its biggest one-day fall in a month.
BMI said prices should remain elevated, as geopolitical uncertainties continue to benefit gold's safe-haven characteristic, while Fed rate cuts and a weaker dollar lend further support.
EMEA HEADLINES
Nestlé CEO Is Leaving Company Amid Slowing Sales Growth
Nestlé said longtime Chief Executive Mark Schneider is leaving the company, as the world's largest packaged-foods maker grapples with slowing sales growth and a slumping share price.
The Swiss manufacturer of Kit Kat chocolate bars and Nescafe coffee said Schneider would be succeeded by company veteran Laurent Freixe, head of its Latin America business, starting Sept. 1. Schneider will resign from the board and hold no further position at Nestlé.
Gold Fields' Shares Fall After Another Guidance Cut, Disappointing Profit
Shares in Gold Fields slipped on Friday after the South African miner booked a lower-than-expected net profit for the first half of the year and cut its full-year production target for a second time due to operational issues.
Its London shares fell as much as 7.4% to 263.02 South African rand in early morning trading. However, shares are up 18% over the past twelve months, driven by strong gold futures.
French Manufacturing Optimism Improves, Despite Weak Prospects
French manufacturers were more positive this month, as hopes of production rebound, despite confidence still being behind its long-term average.
A gauge of manufacturing sentiment rose to 99 in August from 95 in July in a survey published Friday by national statistics agency Insee
Apple to Let iPhone Users Delete Safari, Other Native Apps to Comply With EU Law
Apple will let iPhone users in the European Union delete native apps, including the App Store and Safari, and allow more third-party tools to replace its own in a bid to comply with the bloc's digital competition law.
The U.S. tech giant said Thursday that software updates later this year will allow iPhone and iPad owners in the EU to delete the company's pre-installed applications. Those programs include the Safari web browser, the App Store, and its photo, camera and messaging apps-tools that are synonymous with the company's flagship product.
GLOBAL NEWS
Jerome Powell's Jackson Hole speech could rally stocks around a soft landing - but messaging is key
Stocks were taking a breather on Thursday, a day ahead of Federal Reserve Chair Jerome Powell's highly anticipated speech at the annual Jackson Hole Economic Symposium in Wyoming.
While a repeat of Powell's brief, blunt remarks two years ago that sparked upheaval in financial markets isn't expected, investors remain on edge about what degree of "pain to households and businesses" from his 2022 speech might still might lurk on the horizon.
Retailers Are Sending Mixed Messages About the Economy. What's the Deal?
This week's earnings tacked on a new layer of confusion for those trying to puzzle out the consumer economy.
On one hand, companies like Walmart, Target, and TJX Cos. seemed to have great quarters, assuring investors that their shoppers were A-OK: Consumers' financial situations haven't gotten all that much better, but they haven't crumbled, either.
Utilities are Beating the Mag 7; They Could Keep Rising
Utility stocks have been soaring like tech stocks lately. In fact, in recent weeks they have been doing much better than the market's hottest names.
In the past month, the Utilities Select Sector SPDR Fund is up 6.1% while the Roundhill Magnificent Seven ETF is down 4%. The S&P 500 is up 0.4%.
Harris Accepts Democratic Presidential Nomination, Vowing to Unite Nation 'Around Our Highest Aspirations'
CHICAGO-Kamala Harris frequently recalls her mother telling her that she might be "the first to do many things" but to make sure she isn't the last. Yet as Harris formally accepted the Democratic presidential nomination Thursday, the vice president didn't directly invoke the historic nature of her candidacy.
Instead of leaning into what her campaign thinks is obvious, the 59-year-old former California senator and prosecutor tried to accomplish something she has struggled to do since her unsuccessful presidential bid in 2019: provide a clear picture to Americans of what she stands for-and why.
Two Million Gazans Are Now Confined to 15 Square Miles
Palestinians in Gaza have long lived in one of the most crowded places on the planet. Since the war broke out there over 10 months ago, the designated space in which they can hope to exist safely has dramatically diminished.
Israel has in recent weeks widened its offensive against Hamas in Gaza to areas its military previously marked as safe zones, but where it now says militants are hiding, hemming Palestinians into smaller and smaller portions of the strip.
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This article is a text version of a Wall Street Journal newsletter published earlier today.