Today, the Asian and European stocks declined, snapping two days of gains, after Japan lowered its assessment of its economy grow for the first time in 10 months.
Japan’s government downgraded its view on personal consumption, house building, exports, imports and industrial output in the world’s third-largest economy. It also lowered its assessment of the global economy.
In Australia, the latest statistic showed that new home sales fell 5.6% in July, after a 2.8% increase the previous month.
Out of the US later in the day, economist predicts that the consumer confidence that will go out today at 13:00GMT will show a rise in the August reading. Whereas, The S&P/Case-Shiller index of house prices in 20 U.S. cities is projected to stay unchanged in June from a year earlier, the first time since September 2010 that it hasn’t shown a drop. This data will go out before the bell at 13:00GMT.
Regardless of the economic data that goes out throughout the week. All eyes were looking forward to the highly anticipated speech from Federal Reserve Chairman Bernanke on Aug. 31 at the central bank’s annual symposium in Jackson Hole, Wyoming. His address in 2010 preceded a second round of bond purchases, or quantitative easing, to help support the economic recovery.
A week after Jackson Hole symposium, The ECB is expected to announce his policy measures to help stabilize the euro zone's sovereign debt markets at its next policy meeting on September 6, but is not expected to begin implementing the measures until at least late September.
These last 2 anticipated key events were the sole reason for the markets rally seen in the past month were the US equity markets are hovering around a multi-year high.
GOLD declined for a third day on speculation that Federal Reserve Chairman Ben S. Bernanke won't commit the central bank to further stimulus in a speech this week even as investment holdings expanded to a record.
Bernanke probably won't use the Aug. 31 speech at the Fed's annual symposium in Jackson Hole, Wyoming, to suggest a third round of bond buying is imminent, according to JPMorgan Chase economist. Members of the Federal Open Market Committee are monitoring unemployment and other U.S. data, and have been divided about whether to spur expansion.