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Dollar gains, stocks teeter as US data suggests rates to stay higher

The dollar rose and a gauge of global equities slid on Thursday after data once again highlighted persistent U.S. labor market strength, suggesting the...
HomeStocksStandard Chartered analyst: Stocks have reason to bounce back after Jackson Hole...

Standard Chartered analyst: Stocks have reason to bounce back after Jackson Hole meeting

If Powell delivers only a slightly hawkish message at the Jackson Hole seminar, stocks and other risk assets have a chance to rise, analysts said. Recent hawkish comments from Fed officials appear to have persuaded market participants to stay out of the market as the Fed raises interest rates, leading markets to agree that Chairman Powell will deliver a hawkish message on Friday, Standard Chartered Bank said.

“We think there is a risk that the market is pricing the Fed hawkishly higher than it actually is, and with positioning skewed to the negative side, we may see relief even with a dovish hawkish stance,” said Steve Englander, an analyst at the bank. Rebound and recognize that economic activity and inflation data are the ultimate drivers of the dollar.”

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