European stocks appeared set for a pause as market sentiment cools ahead of crucial announcements from the Federal Reserve and the Bank of Japan.
Futures for the Euro Stoxx 50 and US equities remained relatively unchanged.
The MSCI Asia Pacific Index trimmed a 0.4% gain as Japan and Hong Kong benchmarks pulled back from session highs. This followed modest gains in the S&P 500 and Nasdaq 100, fueled by growing indications that the Fed might cut interest rates.
The subdued market movements reflect a cautious tone ahead of Federal Reserve Chair Jerome Powell’s upcoming speech at the Jackson Hole economic symposium on Friday.
Recent trading sessions saw an increase in expectations for a rate cut, notably after Fed minutes revealed that several officials acknowledged a plausible case for lowering rates.
Meanwhile, US stocks ended the day on a positive note, gaining momentum as the session progressed. The S&P 500 rose by 0.4%, the Nasdaq increased by 0.6%, the Dow Jones edged up by 0.1%, and the Russell 2000 saw a 1.3% gain.
This occurred despite downward revisions to previous months’ US jobs data and the dovish tone in the minutes from the Federal Reserve’s July policy meeting.
