Asian stocks opened mixed and Australian bonds fell as investors await comments from central bankers meeting at Jackson Hole and as political wrangling continues in Washington.
Equity benchmarks were higher in Tokyo, while Australia’s main gauge declined. The yen was little changed and the dollar held onto gains against most peers. Crude traded below $48 a barrel as a storm strengthened into a hurricane aimed at Texas.
In a week when traders had little to go on and the northern summer kept volumes suppressed, equity markets held in tight ranges as investors focused on the forum in Jackson Hole, Wyoming. Though European Central Bank President Mario Draghi isn’t expected to offer a fresh policy message, his speech and that of Federal Reserve Chair Janet Yellen on Friday will be parsed for clues on the timing of reductions in stimulus. Two Fed officials offered opposing views Thursday on the inflation debate. Kansas City’s Esther George said another rate hike is feasible this year if U.S. data holds up. Dallas’s Robert Kaplan called for patience in waiting for prices to go higher.
Meanwhile, President Donald Trump took to Twitter to fuel the debate on legislation to keep the U.S. government open next month. Trump blasted Republican leaders for ignoring his advice on raising the debt ceiling and creating a “mess.” Countering, House Speaker Paul Ryan said the borrowing limit will be raised. Rates on short-term Treasury bills spiked amid concern Congress and the White House may not act in time. – Bloomberg