Stock Market

With the data calendar relatively light across major economies this week, all eyes are on Wednesday’s release of the Fed’s July meeting minutes and Chair Jerome Powell’s speech at Jackson Hole on Friday for clues on the outlook for U.S. rates.

European shares fluctuated on Monday after their best weekly gain in three months, as investors braced for a data-heavy week with a focus on U.S. Federal Reserve Chair Jerome Powell’s speech at Jackson Hole for clues on potential rate cuts.

Softer U.S. inflation data this week has put an interest rate cut by the Federal Reserve for the first time in more than four years firmly on the agenda at its next meeting in September, although the healthy labor market data as well as the retail sales suggest a 25-basis-point cut rather than anything more…

The prospect of lower interest rates bodes well for stock markets, given that it frees up capital that can then be invested into the sector. Lower rates also help soothe concerns over slowing economic growth, after weak readings on the labor market sparked increased volatility on Wall Street. 

European stocks and U.S. futures held steady on Monday, while the yen slipped as a holiday in Japan removed one source of recent volatility, and investors looked ahead to U.S. and Chinese economic data.

Europe’s main index rose on Friday, with a continued boost from healthcare stocks, logging gains for a fourth consecutive session and eking out a gain for a turbulent week that began with a rout for global stocks on fears of a U.S. recession.

The “unexpected drop in jobless claims offers a welcome positive indication of labor market conditions, softening concerns of more precipitous weakness in the aftermath of a somewhat disappointing jobs report,” Stifel said. 

Olaplex’s professional channel saw an 18.4% YoY decline in sales to $33.4 million, while direct-to-consumer revenue dropped 11.5% to $34.1 million. This offset a 22.4% gain in specialty retail sales to $36.4 million.

U.S. stock index futures tumbled on Monday, with those tied to the Nasdaq sliding almost 5%, as fears of the United States tipping into recession following weak data last week rippled through global markets.

Asked by analysts about the prospect of a compromise with Exxon that could shorten the arbitration dispute, CEO Wirth said the idea would be “sensible” and has been tried, but “it doesn’t appear that is how this is going to end up.”