With holiday mode prevalent and little in the way of tier 1 economic data releases, markets all appear to be looking forward to the Jackson Hole symposium which starts on Thursday. Both Fed Chair Janet Yellen and ECB President Draghi, amongst officials, will be addressing the summit.
The symposium is held annually at Jackson Hole Wyoming, a resort with the Grand Teton mountain in the backdrop. It has been hosted by the Kansas City Fed since 1978 and is attended by central bankers from around the world as well as leading players from the investment community, academics and finance ministers. The theme this year is ‘Fostering a Dynamic Global Economy.’
Yellen will speak on Friday morning about financial stability, with the market keen to hear any new information regarding the timing of the Fed balance sheet tapering, followed by Draghi at lunch time. Although reports suggest that Draghi will focus on the summit's theme subject, observers are speculating he may send a policy signal regarding the central bank's bond buying program. He may also mention the concerns over the euro's overshoot, which could stall current European economic revival. Indeed Draghi could use this forum to provide clues on the ECB’s thoughts; it was here three years ago that he laid the groundwork for the current central bank bond buying program.
Of course markets also have the ongoing US and South Korean military exercises on the Korean peninsula to worry about, as well as the ongoing saga known as Brexit and of course President Trump and his twitter account. Good luck.