Who will lead European Central Bank?

  • Who will lead European Central Bank?

Who will lead European Central Bank?

TOKYO: Asian stocks advanced, once again shrugging off a sluggish day on Wall Street, as attention shifted to the central bankers' symposium in Jackson Hole, Wyoming. The most watched events will come Friday, when Yellen and Mario Draghi, head of the European Central Bank, will each address the conference.

"His responses during the Q&A were more closely related to the outlook for the euro area, but stuck to the familiar narrative of weak inflation necessitating ongoing monetary accommodation", economists Jamie Murray and Niraj Shah wrote in a Bloomberg Intelligence analysis.

Although the euro zone economy is growing for the 17th straight quarter, big gaps have opened between the bloc's core and peripheral members, and between the top and bottom tiers of society, fuelling social tension and discontent with the European project.

The odds of a Fed rate hike in December are now well below 50%. The US dollar index, which tracks the greenback against a basket of six major rivals, was down 0.40% at 92.86 by 10:23AM ET (14:23GMT), compared to 93.22 ahead of the speech.

Dow e-minis were up 45 points, or 0.21 percent, with 17,711 contracts changing hands.

The absence of any meaningful discussion of monetary policy by either central bank leader was taken by markets as a signal that the Fed is in no hurry to raise interest rates, and that the ECB is little concerned by the strength of the euro's exchange rate. Inflation has been running below the Fed's 2 percent target for five years.

In a speech delivered at the annual meeting of central bankers in Jackson Hole, Wyoming, she also dismissed out of hand the efforts of the republicans and the president from Donald Trump aimed at dismantling the law of financial regulation, Dodd-Frank, passed in 2010.

S&P 500 e-minis were up 6.75 points, or 0.28 percent, with 123,818 contracts traded.

Yellen's comments "were the very definition of a "nothingburger"," said Brien Lundin, editor of Gold Newsletter.

The US data is unlikely to have a major impact with Jackson Hole the main focus. In the United States, durable goods orders for July are due out at 13:30 BST. But it also created haves and have-nots, driving wealth toward networked cities and the highly educated while shifting manufacturing jobs away from developed countries.

Janet Yellen's speech is much anticipated, and could provide further insight into the likelihood of another interest hike in the U.S. during 2017.

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"We believe that barring short-term corrections, likely driven by profit-taking given elevated tactical positioning, the palladium market is fundamentally constructive over the next couple of years", Standard Chartered said in a note, adding that both NYMEX and industry stocks were falling.