* Subdued trading after Jackson Hole
* STOXX 600 up 0.1%
* Wall Street futures tick up
* UK on bank holiday
Aug 30 – Welcome to the home for real-time coverage of
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THE REFLATION TRADE LIVES ON (0833 GMT)
It seems Powell’s Jackson Hole speech extended the appeal of
one of the most popular trade of the year.
According to this morning’s UBS House View, the investment
implication of the Fed chair’s dovish speech support the
reflation trade.
“The resumption of the reflation trade that was evident all
week continued after the speech”, the strategists argued.
“After a hawkish turn during the summer, the speech is more
reminiscent of Fed communication early in the year that
emphasized maximum employment and data dependency”, they argued.
“That messaging was supportive of value and cyclical
equities back then, and we think that is the case once again”.
Some reading on Jackson Hole:
ANALYSIS-Powell’s wait-and-see speech reassures some
investors
Why Fed Chair Powell still thinks high…
