World shares are mixed after Federal Reserve Chair Jerome Powell hints at interest rate cuts in September
Global markets showed a mixed trend on Monday following Federal Reserve Chair Jerome Powell’s indication of potential interest rate cuts.
European markets started on a lower note, with Germany’s DAX down 0.2% and France’s CAC 40 losing 0.6%. The UK markets were closed for a holiday.
US futures for the S&P 500 and the Dow Jones Industrial Average were also down 0.2%.
Asian markets, on the other hand, saw gains with Hong Kong’s Hang Seng index closing 1.9% higher and Tokyo’s Nikkei 225 gaining 0.4%.
Investors are anticipating a rate cut by the Fed in September following weak job growth data and pressure from President Donald Trump for lower rates.
Lower interest rates can stimulate borrowing, investment, and spending, but may also lead to inflation.
Stocks on Wall Street rallied on Friday after Powell’s speech at the Jackson Hole conference, where he highlighted risks in the job market.
Focus this week will be on Nvidia’s earnings report, a key indicator for the broader market due to its role in artificial intelligence technology.
In other news, US benchmark crude oil prices rose, while the US dollar gained against the Japanese yen and the euro.
