EUR/USD likely to find a peak near 1.25: UBS
Investing.com - European stocks traded largely unchanged Thursday, with investors awaiting the start of the influential Jackson Hole symposium later in the session as well as the release of regional activity data.
At 03:40 ET (07:40 GMT), the DAX index in Germany gained 0.1% and the FTSE 100 in the U.K. rose 0.1%, while the CAC 40 in France slipped 0.2%.
Caution ahead of Jackson Hole
The U.S. Federal Reserve’s highly anticipated Jackson Hole symposium kicks off later Thursday, with central bankers from around the world gathering in Wyoming to discuss monetary policy.
The highlight is likely to be Jerome Powell’s speech on Friday - his last one at the annual gathering as Fed chairman - with investors searching for hints for a September cut after expectations soared in the wake of a surprisingly soft payrolls at the start of the month.
However, Powell isn’t the only central banker set to speak at the conference, with the likes of European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey scheduled to appear on various panels.
Market-implied odds of a quarter-point cut by the Fed on September 17 currently stand at 80%, down from 84% a day ago but still broadly expected.
Flash European PMIs in focus
Also on the slate later in the day are flash purchasing managers’ index data for August for the eurozone, as well as the majority of individual countries, including the likes of Germany and Britain.
The French numbers emerged earlier, and showed that the country’s business activity almost grew for the first time in a year in August, indicating signs of stabilisation in the euro zone’s second-biggest economy after a sustained period of contraction.
The HCOB France flash purchasing managers index (PMI) for the country’s dominant services sector, compiled by S&P Global, came in at 49.7 points in August, at its highest since August 2024 and close to the 50 point threshold separating growth from contraction.
The flash manufacturing PMI for this month increased to 49.9 points - a 31-month high - from 48.2 in July, while the flash August composite PMI - which comprises both the services and manufacturing sectors - reached 49.8 points from 48.6 in July.
WH Smith cuts FY guidance
The flow of quarterly earnings is slowing, but there are still some reports to digest.
British retailer WH Smith (LON:SMWH) lowered its full-year profit outlook after a review revealed earnings had been overstated, to the tune of around £30 million, due to premature recognition of supplier income in its North American division.
Aegon (NYSE:AEG) reported a healthy net profit in the first half of 2025, after a loss a year earlier, supported by business growth in the United States, with the Dutch insurer stating it will double its share buyback and lift its interim dividend by 19%.
Finnish real estate company Kojamo (HE:KOJAMO) reported a modest rise in revenue but weaker profitability in the second quarter of 2025, as valuation losses on its property portfolio continued to weigh on results.
U.K. engineering group Renishaw (LON:RSW) forecast full-year 2025 profit at the top end of its guidance range, easing concerns over U.S. tariffs and highlighting faster delivery of previously announced cost savings, even as its longtime finance chief prepared to step down.
Crude prices rise again
Oil prices rose Thursday, adding to recent gains and buoyed by signs of resilient demand in the U.S., the world’s largest consumer of energy.
At 03:40 ET, Brent futures gained 0.8% to $67.37 a barrel, and U.S. West Texas Intermediate crude futures rose 1% to $63.33 a barrel.
Both contracts climbed over 1% in the prior session.
U.S. crude inventories fell by 6 million barrels last week, the U.S. Energy Information Administration said on Wednesday, while gasoline stocks dropped by 2.7 million barrels, both more than expected.
This indicated steady driving demand during the peak summer travel season, helping offset some concerns about global economic uncertainty.