EmailS&P futures are flat. It is only Tuesday, and every financial article across the web this morning starts with the assertion that market participants are on hold awaiting Fed Chairman Bernanke's speech Friday at 10:00 ET in Jackson Hole, Wyoming. And it is true.
Yesterday was an extremely quiet day in the stock market. Volume and volatility were low. A similar open appears likely today and the languid summer tone could continue right up to the release of Bernanke's written statement on Friday. That is, of course, barring a major event. Tropical storm Isaac does not rate as such, at least for the global financial markets.
Energy prices are stable even though Isaac is now shutting down oil production from the gulf. It is borderline between a tropical storm level and a Category 1 hurricane. (Katrina was a Category 5 hurricane while crossing the Gulf of Mexico and a Category 3 when it hit Louisiana.) Isaac should hit land near midnight in Louisiana. In terms of a market event, it will soon pass.
The Japanese stock market fell 0.6% after the government lowered economic forecasts. Most private economists are now forecasting a decline in third quarter real GDP for Japan. Japan will join Europe in the negative club. European stock exchanges are down about 0.8%. The Spanish 10-year yield is unchanged at 6.41%.
European Central Bank President Draghi announced that he will not attend the Jackson Hole event for central bankers at which Bernanke speaks on Friday. It would be a futile exercise to try to assess from this anything about what Bernanke might say.
The Case-Shiller home price index is due at 9:00 ET and Conference Board's consumer confidence index at 10:00 ET. There is no major corporate news.
Founder and Chairman, Briefing.com
