• European indices set for flat opening
  • Fed Chair Powell speaks at Jackson Hole symposium
  • Canadian retail sales data, US new home sales report

European index futures point to a more or less flat opening of the European cash session today. This comes after a sell-off on Wall Street yesterday and a rather upbeat Asia-Pacific session earlier today. There was no direct news that could justify the sell-off on Wall Street yesterday, and the move seems to be driven by uncertainty over whether Fed Chair Powell will confirm September rate cut today or not.

Economic calendar for today is light. There are no macro releases scheduled for the European morning. Traders will be offered Canadian retail sales data for June at 1:30 pm BST and US new home sales data for July at 3:00 pm BST. However, central bankers' speeches are the main event of the day. Fed Chair Powell is scheduled to deliver his speech at Jackson Hole symposium at 3:00 pm BST today. Markets are pricing in aggressive Fed easing in the remainder of 2024 and investors hoped that Fed Chair Powell will hint today that the first rate cut will come at September meeting. There is a risk that Powell will sound less dovish than markets expect and it could trigger strong hawkish reaction in the markets.

1:30 pm BST - Canada, retail sales for June

  • Headline. Expected: -0.2% MoM. Previous: -0.8% MoM
  • Core. Expected: -0.3% MoM. Previous: -1.3% MoM

3:00 pm BST - US, new home sales for July. Expected: 625k. Previous: 617k

Central bankers' speeches

  • 1:00 pm BST - Fed Bostic
  • 3:00 pm BST - Fed Chair Powell
  • 5:30 pm BST - Fed Goolsbee
  • 6:45 pm BST - Fed Goolsbee
  • 7:15 pm BST - Fed Goolsbee
  • 9:00 pm BST - BoE Chairman Bailey