European Markets Edge Higher Ahead of High-Stakes Trump-Zelenskyy Talks

Economic

Summary:

European stock markets are poised to open higher on Monday, driven by anticipation surrounding critical peace talks between U.S. President Donald Trump, European leaders, and Ukrainian President Volodymyr Zelenskyy in Washington...

Market Sentiment Boosted by Diplomatic Focus on Ukraine War

European equities are expected to open slightly higher Monday as political developments overshadow economic data releases. The FTSE 100 is projected to rise by 0.23%, Germany’s DAX by 0.16%, France’s CAC 40 by 0.24%, and Italy’s FTSE MIB by 0.2%. This mild optimism is tied to the diplomatic spotlight currently centered on Washington, D.C., where a pivotal meeting on the Ukraine-Russia conflict is scheduled.

European leaders German Chancellor Friedrich Merz, French President Emmanuel Macron, and British Prime Minister Keir Starmer will accompany Ukraine’s President Volodymyr Zelenskyy to a White House meeting with President Donald Trump. The agenda: a potential peace deal that could mark a turning point in the ongoing war.

Trump has signaled pressure on Zelenskyy to pursue a settlement, stating on his social platform Truth Social that “he could end the war almost immediately if he wants to.” This comes just days after Trump’s summit with Russian President Vladimir Putin, who reportedly floated the possibility of a ceasefire on the condition that Russia gains full control of Ukraine’s eastern Donbas region. No formal agreement was reached during that summit, but U.S. Special Envoy Steve Witkoff suggested Sunday that offering Ukraine security guarantees may be key to ending the conflict.

Global Markets Watch Political Calculations Closely

Asia-Pacific markets reflected cautious optimism ahead of the talks, with most indexes rising modestly. U.S. futures were also up slightly during early Monday trading, continuing last week’s upward momentum driven by renewed hopes for interest rate cuts from the Federal Reserve.

Though geopolitical risks remain elevated, particularly with the ongoing Russia-Ukraine war and the political calculus involved in a potential ceasefire, investors are finding reassurance in signals of progress or at least dialogue. The diplomatic gathering in Washington marks one of the most significant international meetings on the Ukraine conflict since the war began.

Muted Economic Calendar Ahead

Economic data on Monday is light, with only Spain’s and the EU’s trade balance figures on deck. There are no major corporate earnings scheduled for release, allowing markets to focus squarely on geopolitics and the upcoming Jackson Hole symposium later in the week, where U.S. Federal Reserve Chair Jerome Powell is expected to deliver insights on monetary policy.

In the interim, European markets are likely to trade cautiously higher, priced on hopes that diplomacy might curb one of the major sources of geopolitical instability impacting global energy, defense, and commodities markets over the past three years.

Source: CNBC

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Daniel Carter

Political

Key points:

● European leaders fear Trump could pressure Zelenskiy into unfavourable deal.

● Kyiv rejects Putin's proposals.

● European leaders back Ukraine.

Ukraine's Volodymyr Zelenskiy and European leaders will meet Donald Trumpin Washington on Monday to map out a peace deal amid fears the U.S. president could try to pressure Kyiv into accepting a settlement favourable to Moscow.

The leaders of Britain, Germany, France, Italy, Finland, the European Union and NATO hope to shore up Zelenskiy at a crucial diplomatic moment in thewarand prevent any repetition of the bad-tempered Oval Office encounter between Trump and Ukraine's leader in February.

Trump will meet first with Zelenskiy at 1:15 p.m. Eastern Daylight Time (1715 GMT) in the Oval Office and then with all the European leaders together in the White House's East Room at 3 p.m. EDT (1900 GMT), the White House said.

After rolling out the red carpet for Russian PresidentVladimir Putinin Alaska on Friday, Trump said an agreement should be struck to end the 42-month-long war which has killed tens of thousands and displaced millions.

"President Zelenskyy of Ukraine can end the war with Russia almost immediately, if he wants to, or he can continue to fight," Trump said on his Truth Social platform, using an alternate transliteration of the Ukrainian leader's name.

However, Zelenskiy has already all but rejected the outline of Putin's proposals at that meeting, including for Ukraine to give up the rest of its eastern Donetsk region, of which it currently controls a quarter.

"We need real negotiations, which means we can start where the front line is now," the Ukrainian leader said in Brussels on Sunday, adding that his country's constitution made it impossible for him to give away territory.

More concerning for him is the fact that Trump, who previously favoured Kyiv's proposal for an immediate ceasefire to conduct deeper peace talks, reversed course after the summit and indicated support for Russia's favoured approach of negotiating a comprehensive deal while fighting rumbles on.

"I am grateful to the President of the United States for the invitation. We all equally want to end this war swiftly and reliably," Zelenskiy said on the Telegram messaging app after arriving in Washington late on Sunday. "Russia must end this war — the war it started. And I hope that our shared strength with America and with our European friends will compel Russia to real peace."

RUSSIAN PEACE PROPOSAL

The outline of Putin's proposals, reported by Reuters earlier, appears impossible for Zelenskiy to accept. Ukrainian forces are deeply dug into the Donetsk region, whose towns and hills serve as a crucial defensive zone to stymie Russian attacks.

As part of any peace deal, Kyiv wants security guarantees sufficient to deter Russia, which took Ukraine's Crimean peninsula in 2014 and launched a full invasion in 2022, from attacking again.

Fearing that they would be shut out of the conversation after a summit to which they were not invited, European leaders held a call with Zelenskiy on Sunday to align on a common strategy for the meeting with Trump on Monday.

The presence of key European allies to back Zelenskiy may alleviate painful memories of Zelenskiy's last Oval Office visit.

"It's important for the Europeans to be there: (Trump) respects them, he behaves differently in their presence," Oleksandr Merezhko, a Ukrainian lawmaker from Zelenskiy's ruling party, told Reuters.

U.S. Secretary of State Marco Rubio, speaking to CBS, dismissed the idea that the European leaders were coming to Washington to protect Zelenskiy.

"They're not coming here tomorrow to keep Zelenskiy from being bullied. They're coming here tomorrow because we've been working with the Europeans," he said. "We invited them to come."

Relations between Kyiv and Washington, once extremely close, have been rocky since Trump took office in January.

However, Ukraine's pressing need for U.S. weapons and intelligence sharing, some of which have no viable alternative, has forced Zelenskiy and his allies on the continent to appease Trump, even when his statements appear contradictory to their objectives.

On the battlefield Russia has been slowly grinding forward, pressing home its advantages in men and firepower. Putin says he is ready to continue fighting until his military objectives are achieved.

Ukraine hopes that the changing technological nature of the war and its ability to inflict massive casualties on Moscow will allow it to hold out, supported by European financial and military aid even if relations with Washington collapse.

Source: Reuters

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Gerik

Economic

Rising Debt Maturities Signal Trouble Ahead for Hong Kong Developers

Hong Kong’s real estate sector long a pillar of the city's economy is now under increasing pressure as debt-laden developers face a steep climb in repayment obligations. According to LSEG data, bond maturities are projected to surge 70% to $7.1 billion in 2026, compared to $4.2 billion this year. This comes at a time when the market is already suffering from falling commercial property valuations, tighter bank credit, and declining sales.

The default of Road King, the first Hong Kong developer to miss a bond coupon payment since the onset of China’s property debt crisis in 2021, highlights the sector’s deteriorating financial health. Earlier this year, Emperor International also defaulted on a loan, signaling rising systemic risks.

Structural Weaknesses Amplify Refinancing Challenges

Many developers in Hong Kong primarily hold office and retail assets segments that have seen valuation declines of more than 50% since their 2019 peak. This sharp devaluation limits developers' ability to liquidate assets or secure fresh capital, increasing the likelihood of more defaults in the coming 12–24 months, according to S&P Global Ratings.

Edward Chan of S&P warns that smaller developers are particularly at risk as banks reduce their exposure. The challenge is compounded by the potential for "fire sales" distressed asset sales that could depress valuations further and cause collateral damage to even financially stable players in the industry.

New World Development, one of Hong Kong’s top developers and a company with HK$180 billion ($23 billion) in debt, managed to avoid default in June via an HK$11.2 billion refinancing deal. However, the company still faces bond repayments of $168 million in 2026 and $630 million in 2027, raising questions about its long-term solvency.

Banks on Edge: Provisions Surge Amid Rising Defaults

The majority of property-related debt in Hong Kong stems from bank loans. Hang Seng Bank reported a HK$2.5 billion charge on its commercial real estate holdings in H1 2025 an increase of 224% year-on-year. Meanwhile, HSBC, Hang Seng's parent, revised its internal models to reflect growing credit risk in the sector, estimating that $18.1 billion worth of Hong Kong commercial real estate loans now fall into the high-risk but non-defaulted category.

Although HSBC emphasized that this shift is not an immediate indicator of worsening credit quality, the reclassification underlines the increasing tension in the financial system. S&P notes that commercial real estate loans make up around 9% of all bank lending in the city, with 70% of such loans secured by collateral.

Despite these risks, the Hong Kong Monetary Authority remains confident in the sector’s resilience. Chief Executive Eddie Yue stressed the robustness of the local banking system, citing strong capital adequacy ratios and prudent provisioning.

Soft-Default Approach: A Strategy to Avoid Market Collapse

To avoid triggering a cascade of defaults, some banks are choosing not to formally recognize distressed developer loans as defaults, nor are they demanding immediate repayment. This strategic delay is intended to prevent further pressure on asset prices and preserve the long-term health of the sector.

JLL Hong Kong Chairman Joseph Tsang acknowledged this pragmatic approach, explaining that banks are choosing to "buy time for a market recovery." By limiting aggressive enforcement actions and holding off on collateral seizures, lenders are hoping to stabilize the sector without triggering mass devaluations or systemic financial stress.

Hong Kong’s property sector is teetering on a precipice. With debt maturities accelerating and asset values in steep decline, developers face a liquidity trap. While larger institutions may still maneuver through refinancing, smaller firms risk falling into default. Banks, too, are walking a fine line balancing prudence with systemic stability. Unless there's a turnaround in property demand or a substantial policy intervention, the sector’s debt woes may deepen, casting a longer shadow over Hong Kong’s broader economy.

Source: Reuters

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Gerik

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Stocks

Asian Equities Mostly Rise as Focus Turns to Washington and Wyoming

Asian markets began the week with modest gains, supported by anticipation around diplomatic meetings in Washington and central bank commentary later this week. Japan’s Nikkei 225 led the region, climbing 0.9% to 43,776.38, while Hong Kong’s Hang Seng rose 0.3% and the Shanghai Composite jumped 1.2% marking a 10-month high for Chinese blue chips. Meanwhile, Australia’s ASX 200 remained flat, and South Korea’s Kospi underperformed with a 1.3% loss, closing at 3,184.17.

Investor attention remains fixed on geopolitical and monetary developments. U.S. President Donald Trump is set to meet Ukrainian President Volodymyr Zelenskyy and European leaders in Washington, a follow-up to his summit with Russian President Vladimir Putin last Friday, which yielded no concrete breakthroughs. European leaders, excluded from the earlier U.S.-Russia meeting, are now seeking alignment on strategy amid growing concern over Russian territorial ambitions.

Jackson Hole in View: Fed’s Communication Will Be Critical

The Federal Reserve’s annual policy symposium in Jackson Hole, Wyoming, opens later this week, with Chair Jerome Powell scheduled to speak on Friday. Investors are looking for clarity on the Fed’s direction after recent U.S. economic data painted a mixed picture.

Markets are pricing in an 85% probability of a rate cut in September, but economic uncertainty has tempered expectations. July data showed retail sales beat forecasts, manufacturing in New York unexpectedly grew, but national industrial output contracted. Consumer sentiment data further complicated the picture, revealing inflation fears still weigh heavily on American households.

Powell’s Jackson Hole remarks will be scrutinized not only for confirmation of September’s rate trajectory but also for any hints regarding the Fed’s long-term strategy as it navigates disinflation, labor market stability, and ongoing political scrutiny.

Wall Street Retreats Modestly on Mixed Earnings and Uncertain Outlook

On Friday, U.S. markets closed with modest losses. The S&P 500 fell 0.3% to 6,449.80, the Nasdaq declined 0.4% to 21,622.98, and the Dow Jones Industrial Average rose slightly by 0.1% to 44,946.12.

Earnings season produced some notable reactions. UnitedHealth Group surged 12% after Warren Buffett’s Berkshire Hathaway disclosed a $1.57 billion stake, signaling value interest in the beaten-down insurer. In contrast, Applied Materials dropped 14.1% despite a solid earnings beat, as its forward guidance fell short, citing uncertainty in the global semiconductor market particularly from its China exposure. Sandisk also slumped 4.6% despite strong quarterly results, with investors reacting negatively to a weaker forecast.

Oil Dips, Dollar Steadies as Market Waits for Clarity

Crude oil prices were little changed early Monday. U.S. benchmark WTI slipped 2 cents to $62.82 per barrel, and Brent crude dropped 6 cents to $65.79, as markets weighed easing geopolitical concerns against global demand softness.

Currency markets were calm. The U.S. dollar edged up to 147.38 yen from 147.18 yen, while the euro remained flat at $1.1703. This stability reflects a wait-and-see attitude as traders await Powell’s policy tone and potential global central bank alignment.

With geopolitical uncertainties unresolved and monetary policy signals yet to emerge, global markets are holding steady but remain sensitive to shifts. The upcoming Jackson Hole symposium and Trump-Zelenskyy talks could provide pivotal clarity. Until then, investor caution will likely prevail, keeping markets range-bound amid competing narratives on growth, inflation, and policy response.

Source: AP

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Gerik

Economic

A Legacy Shaped by Shocks, Now Challenged by Ambiguity

Since becoming Chair in 2018, Jerome Powell has steered the Federal Reserve through a cascade of crises from a global pandemic and unprecedented fiscal-monetary coordination to the fastest tightening cycle in decades. At Jackson Hole in 2022, Powell evoked the spirit of Paul Volcker in declaring war on inflation “until the job is done.” In 2023, with unemployment rising, he shifted tone to defend the labor market. Now, with his term ending next May, Powell finds himself caught between two mandates stable prices and full employment at a time when incoming data no longer clearly prioritizes one over the other.

Friday’s speech, framed against the Grand Teton Mountains, comes amid growing internal division at the Fed and mounting external expectations. Investors overwhelmingly expect a 25-basis-point rate cut in September, while the Trump administration is applying pressure to move faster, citing weakening economic growth and the deflationary potential of deregulation and productivity gains. Yet inflation remains about one percentage point above the Fed’s 2% target and has shown recent signs of reacceleration.

Data Dependence Under Strain as Signals Conflict

Powell has built his tenure on a commitment to data dependency, avoiding premature moves and reacting decisively when evidence supports it. However, that strategy is increasingly under stress. Recent revisions to U.S. labor data, particularly a steep downward revision in May and June payrolls, have amplified concerns that the job market is not as robust as headline figures suggest. Fed Governor Christopher Waller and others argue that these signals justify immediate rate cuts to avoid a sharper downturn.

Conversely, other policymakers remain wary. Inflationary risks fueled in part by Trump’s aggressive tariff proposals are clouding the path ahead. While some within the Fed believe the tariff-related price increases are temporary, others are hesitant to ease monetary conditions without firmer evidence that inflation is durably declining. Powell’s speech must therefore bridge a widening philosophical gap within the Fed’s leadership, while also maintaining market credibility.

Political Expectations vs. Policy Communication

Beyond the economic data, Powell is also operating under intense political scrutiny. Trump administration officials, including Treasury Secretary Scott Bessent, have criticized the Fed’s wait-and-see approach, favoring a return to the forward-looking framework of Alan Greenspan in the 1990s. They argue that anticipated productivity gains and deregulation will contain inflation, and that delaying rate cuts could unnecessarily weaken growth.

Yet the Fed’s challenge is not merely whether to cut, but how to communicate it. As former Vice Chair Richard Clarida noted, a September cut if delivered requires careful explanation: Is it a one-off adjustment or the beginning of an easing cycle? Markets need clarity not only on immediate action but also on the Fed’s medium-term outlook, particularly with Powell nearing the end of his term and potential successors already influencing discourse.

Shifting Landscape: Is the Fog Lifting?

The broader macro context has changed since Powell’s last Jackson Hole appearance. The Fed funds rate, now at 4.25%–4.5%, is less restrictive than a year ago. The S&P 500 is near all-time highs. Unemployment has stabilized, but GDP growth is slowing toward 1%, prompting a mixed picture of economic resilience. Inflation, which had been steadily falling in 2023, has since plateaued or even edged higher, undermining last year’s rationale for rate cuts.

Yet some policymakers, like Richmond Fed President Thomas Barkin, believe that the uncertainty that paralyzed policy earlier this year is dissipating. “The fog is lifting,” he said though it remains unclear what lies beyond it. Powell’s task now is to clarify whether the central bank sees current conditions as consistent with a gradual return to neutral, or whether risks both upside and downside require continued flexibility.

A Balancing Act With No Easy Answers

Powell’s upcoming Jackson Hole address may be remembered not just as a capstone to his leadership, but as a signal of the Fed’s next strategic pivot. Whether he leans hawkish, dovish, or remains strictly noncommittal, his words must provide coherence to a deeply divided policy environment and a market braced for action.

Striking the right balance between defending credibility, preserving flexibility, and preparing for a possible transition in Fed leadership will define Powell’s closing chapter. And as the political and economic cycles converge, that balance is harder than ever to maintain.

Source: Reuters

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Economic

Trump’s Rhetoric Stokes Geopolitical Uncertainty

As the week opens, global markets are navigating a complex geopolitical backdrop dominated by U.S. President Donald Trump’s increasingly pro-Kremlin messaging ahead of a high-stakes meeting with Ukrainian President Volodymyr Zelenskiy and European leaders in Washington. Trump’s recent comments, including tweets echoing Moscow’s stance on Crimea, indicate a renewed willingness to adopt Russia’s narrative.

Meanwhile, speculation however outlandish that Russian President Vladimir Putin sent a body double to the Alaska summit underscores the murky optics of the current negotiations. What remains unambiguous is Putin's demand for Ukraine to relinquish all territories Russia has occupied, a condition that remains non-negotiable for Kyiv and its Western allies. Their unified presence at the Washington summit serves as a counterbalance to any potential concessions that Trump might float.

These diplomatic maneuvers have directly influenced commodity markets. With reduced anticipation of new U.S. sanctions on Russian oil exports, Brent crude slipped 0.3% and WTI also eased, reflecting a lowered geopolitical risk premium on energy supply.

Earnings Keep Equities Buoyant as Wall Street Eyes Consumer Health

Despite geopolitical noise, global equity markets continue to gain. Japan and Taiwan extended their record-breaking rallies, while Chinese blue chips reached a 10-month high. European and U.S. stock futures rose modestly by around 0.2%, reflecting confidence underpinned by a resilient earnings season.

According to Goldman Sachs, S&P 500 earnings per share rose 11% year-over-year in Q2, with 58% of firms upgrading full-year guidance. This week, earnings from retail heavyweights Home Depot, Target, Lowe’s, and Walmart will offer insights into U.S. consumer spending behavior and the broader health of the domestic economy.

All Eyes on Jackson Hole as Fed Prepares to Signal Its Hand

The Federal Reserve’s annual Jackson Hole symposium, beginning August 21, will serve as the central stage for monetary policy watchers. Fed Chair Jerome Powell is scheduled to deliver remarks on the economic outlook and policy trajectory this Friday. Although no Q&A session is planned, markets will parse every word for signs of dovishness or the lack thereof.

With futures pricing in an 85% probability of a 25-basis-point cut at the September FOMC meeting, any deviation from that expectation especially if Powell adopts a more neutral or cautious tone could spark volatility in bond and equity markets.

At the short end of the yield curve, expectations of rate cuts continue to anchor yields. However, long-term yields are rising due to lingering inflation concerns, a widening U.S. fiscal deficit, and growing unease over the politicization of monetary policy. This dynamic is steepening the curve, a rare occurrence in a post-tightening cycle and a signal of potential structural imbalances in the bond market.

European bond markets are experiencing similar upward pressure on yields, largely due to mounting defense expenditures and broader fiscal demands. The realization that European governments will need to substantially increase borrowing is beginning to take hold among fixed-income investors.

Outlook and Monday’s Catalysts

Monday’s key data releases include EU trade figures for June and the U.S. National Association of Home Builders (NAHB) housing market index both of which could offer incremental signals on global demand and consumer resilience.

However, broader market direction remains tethered to two primary forces: geopolitical developments in the Trump-Zelenskiy talks and forward guidance from Powell later in the week. Should geopolitical tensions escalate or Powell appear less committed to easing, risk sentiment could swiftly reverse.

Markets remain cautiously optimistic, buoyed by strong earnings and expectations of policy support. Yet, that optimism faces tests on two fronts: a volatile geopolitical landscape with implications for global energy flows and a delicate monetary environment where Powell’s words could either affirm or upend market pricing. In both realms, investors are bracing for hard trade-offs whether in diplomacy or interest rates.

Source: Reuters

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Samantha Luan

Commodity

Cryptocurrency

Stocks

Forex

Economic

Last week, markets focused on the rising chance of a U.S. rate cut in September. U.S. CPI was weaker than expected, boosting hopes for a cut, while PPI was higher, showing the impact of tariffs on U.S. companies. Despite the mixed data, traders still expect a rate cut next month, helping drive U.S. and Japanese stocks to record highs.The Reserve Bank of Australia cut rates as expected. In the U.K. and Japan, stronger GDP results lifted both the pound and yen. President Trump also signed an order extending the tariff truce with China for another 90 days, pushing the next key deadline to November 10, 2025, and avoiding an immediate escalation in trade tensions.

Oil prices fell ahead of the Trump–Putin summit where they will discuss ending the war in Ukraine, with markets watching closely for the outcome. Overall, risk sentiment improved as investors weighed trade uncertainty against central bank support and stronger global growth.

Markets This Week

U.S. Stocks

The Dow hit record highs last week, supported by growing expectations of a U.S. rate cut at the September meeting after weaker-than-expected CPI data. However, concerns remain over the negative impact of tariffs, with higher PPI showing the pressure on U.S. companies, and the market is waiting for more data to see the full effect. Overall, the Dow is expected to trade sideways to higher, making buying opportunities more attractive in the near term. Key resistance levels are at 45,000 and 46,000, while support is seen at 44,000, 43,000, and 42,000.

Japanese Stocks

Japanese stocks posted another week of strong gains, with the Nikkei 225 surging to record highs as optimism from the U.S. trade deal continued and momentum followed U.S. equities higher. The index is now up nearly 10% over the past month, so some consolidation is likely, making it better to wait for a pullback to the 10-day moving average before buying or selling in the short term. Key resistance levels are at 44,000円 and 45,000円, while support is seen at 42,000円, 41,500円, and 41,000円.

USD/JPY

The USD/JPY came under selling pressure last week as expectations of a U.S. interest rate cut encouraged selling, while stronger-than-expected Japanese GDP data raised the chances of a rate hike in Japan. The market looks balanced at current levels, so range trading remains the preferred strategy for now. Resistance is at 148, 149, and 150, while support is at 146 and 145.

Gold

Gold prices fell last week as profit-taking at the top of the recent range and record highs in equities reduced demand for the metal. This came despite U.S. rate cut expectations, which remain supportive for gold in the bigger picture. The market is expected to stay well supported at lower levels, creating potential buying opportunities in the week ahead. Resistance is at $3,400 and $3,450, while support is at $3,300, $3,250, and $3,200.

Crude Oil

WTI crude continued its recent downtrend, staying under pressure as bearish sentiment dominated. Prices were weighed down by OPEC+ production increases, weak Chinese economic data, and concerns that tariffs could further reduce demand. In addition, talks between Trump and Putin to end the war in Ukraine raised the risk of more Russian oil supply hitting the market, adding to downside pressure. Selling into strength remains the preferred strategy, with the 10-day moving average pointing lower. Resistance is seen at $65, $70, and $75, while support is at $60 and $55.

Bitcoin

Bitcoin hit record highs last week as traders continued to buy risk assets on expectations of lower U.S. interest rates. However, the market saw a sharp sell-off from the highs after comments from the U.S. Treasury Secretary confirmed there were no plans for further government Bitcoin purchases. A key reversal on Thursday, where the market made a new high but closed lower, along with a close below the 10-day moving average, could limit further upside in the short term. The preferred strategy is to buy on weakness and sell into strength. Resistance is at $120,000, $125,000, and $150,000, with support at $112,000, $110,000, and $105,000

This Week’s Focus

● Monday: E.U. Trade Balance

● Tuesday: U.S. Building Permits, U.S. Housing Starts

● Wednesday: Japan Trade Balance, U.K. CPI, E.U. CPI

● Thursday: U.S. FOMC Meeting Minutes, E.U. HCOB Eurozone Manufacturing PMI, U.K. S&P Global Manufacturing PMI, U.S. Initial Jobless Claims, U.S. S&P Global Manufacturing PMI, U.S. Existing Home Sales, U.S. US Leading Index

● Friday: Japan National Core CPI, U.K. Retail Sales, Germany GDP, U.S. Fed Chair Powell Speaks

This week, traders will stay focused on U.S. interest rate cut expectations. Inflation reports from the U.K. and Japan will also be important, as markets look for clues on when the Bank of England may cut again and if Japan could raise rates after last week’s strong GDP and the new trade deal with the U.S. The Federal Reserve will release minutes from its July meeting, giving more detail on how officials see inflation, growth, and the timing of future moves.

The Jackson Hole Economic Policy Symposium takes place later in the week, bringing together central bankers and policymakers from around the world to discuss the economy and monetary policy. On Thursday, flash PMI data from the U.S., Eurozone, U.K., and Japan will provide an early look at business activity in August. The week ends with Fed Chair Powell’s speech on Friday, which could give new signals on the U.S. economy and interest rates.