Speaking at the Fed’s annual symposium in Jackson Hole, Wyoming on Friday, Bernanke said the Fed would act as needed to strengthen the U.S. economic recovery, but he fell short of indicating that a fresh round of stimulus is imminent.
On Monday, ECB President Mario Draghi indicated that he would be comfortable buying bonds with maturities of up to about three years, saying that it would not constitute state financing.
The US and Canadian markets were closed yesterday due to Labor Day that was celebrated that day but it didn’t prevent from the rest of markets to go further higher even with the low liquidity in the markets.
Early in the morning today, Asian stocks traded lower after Chinese manufacturing data disappointed, while the Moody's ratings agency cut its outlook for the European Union. Moody's announced it was maintaining the European Union's Aaa rating but cut its outlook to negative, which suggests downgrades are possible.
The news sent stocks dipping in Asia and also put some pressure on the European markets although no major move is seen at this moment.
The Economic Calendar for today is thin with no major enouncements’:
07:00 ES Unemployment Change
08:30 UK PMI Construction
09:00 EMU Producer Price Index (YoY)
09:00 EMU Producer Price Index (MoM)
12:58 US Markit Manufacturing PMI
Besides the ECB press conference on Thursday, the anticipated monthly Job report (NFP-Non Farm Payrolls) out of the US is due later in the week (Friday 1230GMT) ,therefore, the markets are expected to stay calm with low liquidity or inertest as investor tend to move sidelines ahead of these major enouncements’ .
Gold futures advanced for the third consecutive day on Tuesday, hitting the highest level since mid-March as ongoing expectations policymakers in Europe and the U.S. will introduce fresh stimulus measures to boost slowing growth continued to underpin the precious metal.