European stocks set to open higher after Fed chair signals more rate hikes possible

by | Aug 28, 2023 | Financial

European shares are set to open higher on the final trading week of August, as traders weighed the prospect of higher interest rates from the U.S. Federal Reserve and looked ahead to upcoming economic data later in the week.Germany’s DAX 30 is seen rising 90 points at the open, France’s CAC 40 is seen 52 points higher, and the Italian FTSE MIB is set for a 201 point gain.Markets are closed in the U.K. for a public holiday.Market participants continue to reflect on a roundup of commentary from the Kansas City Federal Reserve’s annual retreat in Jackson Hole, Wyoming, last week. At the gathering, a slew of central bankers met to discuss monetary policy and how to address stubbornly high inflation in many major economies.The most closely watched speech of the event came from Fed Chair Jerome Powell. The U.S. central bank head said that that inflation remains too high and that the Fed is ready to continue hiking interest rates to tame persistently high prices.While Powell said the Fed could be flexible, he added it still has further to go to fight inflation.”Although inflation has moved down from its peak — a welcome development — it remains too high,” Powell said in prepared remarks at Jackson Hole.”We are prepared to raise rates further if appropriate, and intend to hold policy …

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