Central bankers are gathering in Wyoming for the biggest annual economic gathering, Jackson Hole, which takes place only a few weeks before the Fed’s next meeting on 17 and 18 September, where it is expected to kick off a series of rate cuts.

Most analysts are waiting for more clarity on the direction of travel for the Fed, with pundits weighing how fast and how deep rate cuts will be over the next few months. Minutes from the Fed’s July session have already confirmed a majority of policymakers are on board with the September rate cut.

Markets are pricing in a 25 bps rate cut, but leaving open a one-in-four chance of a larger 50 bps rate cut, CNBC cites FedWatch data as saying. The 50 bps cut is further off, and would require a deterioration of economic data between now and then, according to pundits.

Most expect Powell’s tone to “lean dovish,” CNBC writes, as inflation continues to trend downwards and the labor market shows signs of softening.

Goldman Sachs expects rate cuts at each of the next three meetings and further easing in 2025, to shave off some 200 bps off of the funds rate.

MARKETS THIS MORNING-

Asian markets are mostly in the red as the world awaits updates from Powell at Jackson Hole. The Nikkei is down 0.11%, while the Kospi fell 0.51% and the small-cap Kosdaq slid 0.58%. Wall Street futures are rising ahead of Powell’s speech, with S&P 500 futures up 0.2% and Nasdaq futures up 0.3%.

ADX

9,371

+0.3% (YTD: -2.2%)

DFM

4,309

+0.3% (YTD: +6.1%)

Nasdaq Dubai UAE20

3759

+0.7% (YTD: -2.2%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

5.0% o/n

4.6% 1 yr

TASI

12,194

+0.1% (YTD: +1.9%)

EGX30

30,141

+0.8% (YTD: +21.1%)

S&P 500

5,571

--0.9% (YTD: +16.79%)

FTSE 100

8,288

0% (YTD: +7.2%)

Euro Stoxx 50

4,885

0% (YTD: 8.0%)

Brent crude

USD 77.22

+1.54%

Natural gas (Nymex)

USD 2.06

+0.3%

Gold

USD2,520

+0.1%

BTC

USD 60,660

-0.6% (YTD: +43.5%)

THE CLOSING BELL-

The DFM rose 0.3% yesterday on turnover of AED 442.2 mn. The index is down 6.1% YTD.

In the green: National Industries Group Holding (+10.1%), Drake & Scull International (+4.6%) and Parkin Company (+4.5%).

In the red: National International Holding Company (-10%), Al Mal Capital REIT (-7.7%) and Al Salam Sudan (-3.6%).

Over on the ADX, the index rose 0.3% on turnover of 940.5 mn. Meanwhile, Nasdaq Dubai fell 2.2%

CORPORATE ACTIONS-

Adnoc petrochemicals JV Borouge appointed Q Market Makers (QMM) as liquidity provider for its shares on the ADX for a duration of one year, according to a disclosure (pdf).

FX Capital Commercial Investments’ owner and Apex Investment’s managing director’s spouse Siham Najar now owns a 13.3% stake in Apex after acquiring 447 mn shares on 19 August, equivalent to a 12.6% stake, according to a disclosure (pdf). The purchased shares were offloaded by Najar’s company FX Capital on the same day, reducing FX Capital’s holding in Apex to 4.3%, according to a separate disclosure (pdf).

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