By Chris Prentice and Elizabeth Howcroft
NEW YORK/PARIS (Reuters) -Global equities fell on Thursday on investor jitters around the Federal Reserve’s three-day annual Jackson Hole symposium, as gold prices eased under pressure from a stronger U.S. dollar.
The symposium started on Thursday, with traders awaiting Fed Chair Jerome Powell’s speech on Friday for hints about the likelihood of a September U.S. rate cut.
U.S. Treasury yields climbed. [US/]
Oil futures advanced, bolstered by signs of strong U.S. demand and uncertainty over efforts to end the war in Ukraine.
The U.S. dollar rose 0.43% against a basket of other currencies.
The MSCI World Equity Index fell 0.38%.
“Jitters over what’s going to transpire tomorrow at Jackson Hole are certainly weighing on risk appetite a little bit with chair Powell’s speech,” said Adam Turnquist, chief technical strategist for LPL Financial.
On Wall Street, the Dow Jones Industrial Average 0.34% to 44,785.50, the S&P 500 lost 0.40% to 6,370.17 and the Nasdaq Composite retreated 0.34% to 21,100.31.
Big-box retailer Walmart’s quarterly results dampened sentiment.
Traders had ramped up bets for a September cut following a surprisingly weak payrolls report at the start of this month, and were further encouraged after consumer price data showed limited upward pressure from tariffs.
But they lowered their expectations slightly following the release of minutes from the Fed’s July meeting. By Thursday, markets were pricing in a 70.4% chance of a September rate cut, compared to 83% on Wednesday, according to LSEG data.
The pan-European STOXX 600 closed flat, and major bourses were mixed.
The European Union said it would strive to ensure lower U.S. tariffs apply to its car exports retroactively, as the EU and U.S. detailed commitments made in a deal reached last month.
Analysts attributed a pullback in tech stocks this week to concerns that AI investments were not delivering returns.
Euro zone business activity accelerated in August, PMI data showed, with Germany registering its fastest growth since March and France’s downturn easing.
Stocks had been near recent highs during Asian trading, and Australia’s benchmark hit a new record.
The 10-year U.S. Treasury yield added 3.2 basis points to 4.328%.
The euro was down 0.4% at $1.1604.
U.S. President Donald Trump intensified his effort to influence the Fed on Wednesday, calling on Governor Lisa Cook to resign on the basis of allegations made by one of his political allies about mortgages she holds in Michigan and Georgia. Cook said she had “no intention of being bullied to step down” from her position at the central bank.
