Markets Brace as Powell’s Speech Looms; Global Shares Hold Steady

Global shares are steady, just 1% below record highs. The dollar hovers near annual lows as markets await a speech from Federal Reserve Chair Jerome Powell. His comments at the Jackson Hole conference will provide insights into potential U.S. interest rate cuts. European and Japanese markets show minor gains.

Global shares steadied on Friday, holding just 1% below all-time highs as investors awaited a crucial speech by Federal Reserve Chair Jerome Powell, which could provide hints on the future of U.S. interest rates. The dollar, meanwhile, languished near one-year lows.

Europe's broad Stoxx 600 index edged up 0.14% in early trading, while Asian shares outside Japan slipped by 0.1%. Japan's Nikkei gained 0.4% as investors digested inflation data and remarks from Bank of Japan Governor Kazuo Ueda, suggesting a potential interest rate hike if economic forecasts hold.

All eyes are on Powell's keynote speech at the Kansas City Fed's Jackson Hole conference. Markets are fully priced for a 25 basis point rate cut in September and additional cuts in the year's remaining meetings. The speech will be scrutinized for any clues confirming or challenging these expectations. U.S. Treasury yields and global currencies like the euro and yen have also been impacted by these anticipations.

(With inputs from agencies.)