Stock exchanges fell across the globe ahead of a key central bankers’ conference in the United States — just as they had nearly recovered from last week’s market carnage.
Investors will be paying close attention to any hints given about future interest rate cuts at the annual Jackson Hole Economic Policy Symposium, in Wyoming.
Reserve Bank of Australia governor Philip Lowe and US Federal Reserve chairman Jerome Powell will speak at the end of this week — with this year’s theme being the challenges for monetary policy.
“Everyone is waiting for Jackson Hole,” said Jim Awad, senior managing director at Clearstead Advisors.
“It’s a wait-and-see attitude until Friday.”
Market snapshot at 7:50am (AEST):ASX SPI futures -0.7pc at 6,454, ASX 200 (Tuesday’s close) +1.2pc at 6,545AUD: 67.74 US cents, 56.06 British pence, 60.99 euro cents, 71.87 Japanese yen, $NZ1.05US: Dow Jones -0.7pc at 25,962, S&P 500 -0.8pc at 2,901, Nasdaq -0.7pc at 7,949Europe: FTSE 100 -0.9pc at 7,125, DAX -0.6pc at 11,651, CAC -0.5pc at 5,345, Euro Stoxx 50 -0.6pc at 3,350Commodities: Brent crude +0.6pc at $US60.12/barrel, spot gold +0.8pc at $US1,507.15/ounce, iron ore -0.5pc at $US87.94/tonne Market recovery hits a roadblock
Weighed by the prospect of even lower interest rates, bank shares experienced the steepest falls on Wall Street and on European stock markets.
The Dow Jones index snapped its three-day winning streak, sliding 173 points (or 0.7 per cent) to 25,962.
The broader S&P 500 dropped 0.8 per cent, while the tech-heavy Nasdaq lost 0.7 per cent.
European markets also tumbled, with steep losses for London’s FTSE 100 (-0.9pc) and Rome’s FTSE