Asia equities are trading positive, with all eyes remain on the Fed heading closer to the Jackson Hole Economic Symposium. On Wall Street, there were fresh record highs for the S&P 500. However, the Nasdaq faced headwinds from a wider U.S. yield curve as markets started to build some positioning around a potentially slight hawkish Fed Chair Jerome Powell on Friday. Worth keeping an eye on how the USD and the front-end of the U.S. rate will trade ahead of this major event.
On the COVID front, a new wave of infections is hurting Australia’s economy as state-wide lockdown is to be prolonged to September 10th. New South Wales reported 1,029 new COVID-19 cases. For the session ahead, ECB Monetary Policy Meeting Minutes and the second print of U.S. GDP data is on the radar. Nevertheless, markets will be positioning for the Jackson Symposium and trading the last days of the month.
