One last summer hurrah?

A look at the day ahead in European and global markets

By Gregor Stuart Hunter, Asia Finance & Markets Breaking News Correspondent

Data refreshes every time you open this email. For more European market news, click here. Please send any feedback to morningbid@thomsonreuters.com.

It's possible that there is a cure for those summer time blues after all, and it's Jerome Powell.

But as the Federal Reserve chair prepares to take the stage at the central bank's annual symposium in Jackson Hole, Wyoming, lethargic traders were still in need of a shot in the arm.

Financial markets continued to drift while waiting for clues from Fed officials about the path of monetary policy and the likelihood of a September rate cut after recent signs of job market weakness.

U.S. Federal Reserve Chair Jerome Powell attends a press conference following the issuance of the Federal Open Market Committee's statement on interest rate policy in Washington, D.C., U.S., June 18, 2025. REUTERS/Kevin Mohatt/ File Photo

S&P 500 futures were flat, showing little enthusiasm for breaking the cash gauge's five-day losing streak on Wall Street, which has left it on track for its biggest one-week decline this month.

Traders had ramped up bets for a September cut following a weak payrolls report at the start of this month, and after consumer price data showed limited upward pressure from tariffs.

However, market pricing pulled back slightly following the release of minutes from the Fed's July meeting. Traders are now pricing in a 75.3% probability of a cut in September, down from 82.4% on Thursday, according to the CME Group's FedWatch tool.

The euro slipped 0.2% to $1.1589 as the EU and the U.S. set out details of a framework trade deal struck in July.

Japanese data showed core inflation slowed for a second straight month in July but stayed above the central bank's 2% target, keeping alive expectations for a rate hike in the coming months. That did little to help the yen though, which was poised for a 1% decline for the week.

BOJ Governor Kazuo Ueda will speak at Jackson Hole this weekend.

MSCI's broadest index of Asia-Pacific shares outside Japan was also flat, supported by a 1.2% gain for China's blue-chip CSI 300 Index, on track for its third consecutive day of gains.

Oil prices moved lower, with Brent crude last trading down 0.2% at $67.54 per barrel, after strong gains on Thursday as Russia and Ukraine blamed each other for a stalled peace process while U.S. data showed signs of strong demand in the top oil consuming nation.

Graphics are produced by Reuters.

Morning Bid is sent every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here.

Want to stop receiving this email? Unsubscribe here. To manage which newsletters you're signed up for, click here.

This email includes limited tracking for Reuters to understand whether you've engaged with its contents. For more information on how we process your personal information and your rights, please see our Privacy Statement.

Terms & Conditions