Asian markets gaining ahead of Powell’s speech
During the early trading on Friday (August 23, 2019), Asian markets started rising. This was ahead of the Federal Reserve Chairman Jerome Powell’s speech. The investors were anticipated to hear any clues on whether the US central bank will cut interest rates in the future.
According to CNN Business, Hong Kong’s Hang Seng Index (HSI) rose 0.6%, whereas China’s Shanghai Composite Index (SHCOMP) also gained 0.6%. Japan’s Nikkei gained 0.2%, while South Korea’s Kospi (KOSPI) was not moving.
Due to the fact that Seoul stated it was ceasing an intelligence-sharing pact with Tokyo, the tensions between the two countries started intensifying.
Investors are considering Powell’s speech very important and expecting his remarks.
“Interest in the Powell speech will be in whether he maintains the line that last months’ action represented no more than a “mid-cycle” adjustment or “insurance” cut,” We presume Powell will want to convey an open-minded view about the outlook for monetary (policy) from here without pre-committing to any set course, but whether he will be suitably dovish enough for the market will be key to the market reaction,” Ray Attrill, head of foreign exchange strategy at the National Australia Bank, said in a morning note, as reported by CNBC.
(Reference: CNN Business, CNBC)
(Image source: Yuya Shino/Getty Images)