During the beginning of the business week, which is marked in the calendar of this year 2023 as the 35th in a row, there was an increase in share prices during the European Monday morning on October 28, 2023 as part of stock market transactions, after during the European Friday afternoon on August 25, 2023 the head of the central bank of the US Federal Reserve System (FED), Mr. Jerome Powell, signaled another possible increase in interest rates in the United States. Mr. Powell made the announcement as part of his speech at the traditional economic symposium in Jackson Hole. This traditional and annual meeting of the world’s financiers in the American mountain resort of the state of Wyoming in Jackson Hole, at the end of the summer vacation this year, took place on August 24-26, 2023, organized by the US central bankers from the Federal Reserve System branch in Kansas City. The World Economic Forum, which is primarily attended by heads of central banks, prominent world bankers, scientists, economists and analysts, including important guests from leading world politicians, has its tradition since 1978, and this year’s 46th Economic Forum 2023 had a central theme: Structural Shifts in the Global Economy”.
In response to this signal sent by the head of the Federal Reserve System, Mr. Jerome Powell, during Monday, August 28, 2023, the investment sentiment changed and the share prices of the European stock market headed upwards. For example, Germany’s main stock index DAX 30 is up +59 points, or 0.4%, year to date, France’s CAC 40 is up +40 points, or 0.6%, and Italy’s MIB is up +200 points, or up by + 0.7% of its point value. Investor sentiment in this vein did not escape the foreign exchange market in connection with the single European currency, the euro (EUR), which also strengthened, especially against the US dollar (USD). Currently, during the European afternoon of Monday 28/08/2023, at approximately 13:12 CET, this currency pair EUR/USD was trading at a mutual exchange rate at a value of 1.081 USD per EUR, with the daily growth of the EUR by + 0.06% of the exchange rate. against the USD. However, as the opening of the US stock market approached, the exchange value of the US dollar began to strengthen. During Monday’s European morning, the US Dollar Currency Index (DXY) USD was at 104.00 with a daily weakness of -0.08% points, but currently on 28/08/2023, at approximately 13:14 CET, the index value is USD in the amount of 104.09 with technical strengthening by + 0.01% of the point value according to this index.
Financial market participants continue to weigh in on a summary of comments from the annual meeting of central bankers and financiers hosted by the Kansas City Federal Reserve in Jackson Hole, Wyoming late last week, according to economic reporters. The gathering brought together a number of central bankers to discuss monetary policy and how to tackle stubbornly high inflation in many major economies. The most closely watched speech of the whole event was the speech of the chairman of the Fed, Mr. Jerome Powell, who said, among other things, that inflation remains too high and that the FOMC FED (Federal Open Market Committee) is ready to continue raising interest rates to tame persistently high prices. While Powell said the Fed could be flexible, he added that it still has work to do in the fight against inflation. “Although inflation has come down from its peak – a welcome development – it remains too high,” Mr Powell said in his speech at the World Economic Symposium in Jackson Hole. “We are prepared to raise rates further if appropriate and intend to keep policy at a restrictive level until we are confident that inflation is moving sustainably towards our target,” Mr Powell added.