2 godzin temu
UK markets hit a third successive record high while US stocks extended their decline for a fifth consecutive session, marking the first such streak since January. The FTSE 100's continued strength contrasts sharply with Wall Street's struggles, as the S&P 500 fell another 0.4% amid growing uncertainty over Federal Reserve policy.
All eyes turn to Federal Reserve chair Jerome Powell's Jackson Hole speech at 3pm UK time today, which could provide crucial signals about future interest rate cuts. Markets have already reduced the probability of a September rate cut to around 73%, down from over 90% a week ago, following robust manufacturing data that showed activity at its fastest pace in three years.
The Dow Jones Industrial Average closed 0.3% lower, with Walmart shares falling 4% despite the retailer lifting its full-year guidance after solid second-quarter results. Deutsche Bank analysts noted the changed landscape since Powell's last public comments, saying they expect "a somewhat different tone today" given recent labour market revisions.
Consumer Confidence Improves
UK consumer confidence reached its highest point for 2025, with GfK's index rising two points to minus 17. The improvement was driven by better personal finances following the recent interest rate cut, though the measure remains in negative territory.
Neil Bellamy, consumer insights director at GfK, said: "While August's overall index score of minus 17 is the best this year, consumer confidence continues to move in a very narrow band, and there's no sense that it is about to break out into fresher, more optimistic territory."
Political Pressure Context
According to Skynews, Donald Trump has intensified pressure on Powell, reportedly nicknaming him "Too Late" and repeatedly calling for his resignation. This political backdrop adds complexity to Powell's positioning as markets await guidance on the Fed's next moves.
Investors will closely watch whether Powell emphasises recent weaker employment data or focuses on more stable economic indicators when he addresses the Jackson Hole Economic Symposium.
Sources used: "The Standard", "independent", "Skynews", "bloomberg.com" Note: This article has been edited with the help of Artificial Intelligence.
