Later this week, investors will be looking forward to the annual Jackson Hole Economic Policy this Friday, which will be held in Wyoming. European Central Bank President Mario Draghi and U.S. Federal Reserve Chair Janet Yellen are set to give keynote speeches during the event.
Although most investors are not expecting new announcements of major policy changes from both leaders, European investors are still hoping for updates regarding the European central bank’s monetary policy plans.
The U.S. Federal Reserve is not expected to headline major announcements after its recently released July meeting minutes overshadowed market hopes of another interest rate hike later this year. The July minutes revealed that Fed officials are still largely concerned regarding the inflation rate and its recent performance.
The European Central Bank which is known for its history of low-interest rates will still be closely watched by investors and analysts along with its quantitative easing measures despite not expecting any major announcements.
By Tuesday, most European stocks have recovered from a three-day low due to recovering commodity prices and an improving global economy.
The MSCI world equity index (NYSE:URTH) has risen by 0.1% on Tuesday after suffering last week. The European stocks broad index was up by 0.4% during the trading session.On Monday, the euro also recorded its biggest one-day rally that pulled most European stocks with it on Tuesday.
The DAX experienced a lost of 0.82% on Monday in Frankfurt with Thyssenkrupp (DE:TKAG) losing 3.18% and closing at 25.265 during the market close. Deutsche Bank (NYSE:DB) also lost 2.41% to 13.760. Osram Licht (DE:OSRn) was also among the biggest losers on Monday’s session after it was down by 1.63% and settling at 34.780.
Despite these losses, European stocks recovered on Tuesday amidst the release of the German economic sentiment data during the trading session as well as the upcoming Jackson Hole event later in the week. Germany’s DAX 30 rallied by 0.67% and is expected to recover further following the release of the sentiment data.