Markets are kicking off the week under pressure as renewed Middle East tensions push oil prices higher, while hawkish central bank expectations add another layer of uncertainty.
Kevin Warsh’s much-awaited Jackson Hole speech boosted expectations of a September Fed rate hike, sending the US dollar and short-term yields higher and weighing on equity appetite. In Europe, accelerating inflation and renewed pressure on energy prices are strengthening expectations that the ECB will continue tightening policy.
Attention now turns to this week’s US jobs data for clues on whether the labour market remains resilient enough to support the Fed hawks. Meanwhile, earnings from Broadcom and Dell will offer another glimpse into booming AI infrastructure demand – and the increasingly important question of how Big Tech will finance its massive spending plans.
Higher oil, higher yields, tighter policy and rising borrowing costs: the ingredients for more market volatility are falling into place.
Here is the link to the Fibonacci analysis, as promised:
Watch the full episode to find out more!
0:00 Intro
0:59 Fed hawks are back
2:57 The Data Watch: inflation, central bank decisions, US jobs
6:47 The Earnings Watch
8:25 Mind the Vol
#Markets #Fed #ECB #JacksonHole #Oil #Inflation #InterestRates #EURUSD #USJobs #AI #BigTech #Broadcom #Dell #Investing #Swissquote #MarketTalk
