Key facts
- Central bank chiefs are convening at the Jackson Hole symposium.
- The Iran war has lasted six months, impacting global markets.
- The U.S. Treasury intervened in the bond market due to a selloff in long-dated debt.
- Nvidia's second-quarter earnings report is scheduled for Wednesday.
- South Korea's central bank will announce its interest rate decision on Thursday.
- Icelanders will vote on August 29 in a referendum regarding EU accession talks.
Central bank chiefs from around the world are set to convene at the Federal Reserve's annual symposium in Jackson Hole, Wyoming. The gathering occurs against a backdrop of geopolitical tension, with the world six months into the Iran war, and financial markets unsettled by a recent selloff in long-dated U.S. debt that prompted intervention from the U.S. Treasury. Investors will be closely watching Fed Chairman Kevin Warsh's keynote address for guidance on monetary policy, particularly whether interest rates are headed higher. While Warsh has focused on structural issues, markets are seeking clarity on immediate economic concerns. Concerns about global inflation are mounting, exacerbated by rising crude oil prices and the prolonged closure of the Strait of Hormuz. European diesel prices have surged over 70% and U.S. gasoline prices are up 60% since February, with refining output curtailed globally. Upcoming inflation data from Australia, France, Spain, and Tokyo, along with the U.S. core PCE reading, will be closely scrutinized. Nvidia's second-quarter earnings report on Wednesday will provide a key read on the artificial intelligence spending boom. The chipmaker's performance is seen as a barometer for AI investment and broader tech sentiment, with investors focusing on demand from major cloud providers. In monetary policy, South Korea's central bank meets on Thursday, with markets anticipating potential follow-up to July's rate hike as inflation remains above target. Governor Shin Hyun Song's comments suggest a preference for maintaining tight policy. Thailand's central bank also meets, but no rate move is expected. Icelanders will vote on August 29 in a referendum to decide whether to reopen EU accession talks, which have been on hold since 2013. Chinese Foreign Minister Wang Yi sought to boost ties with South Korea amid signs of strains in the long-standing US-South Korean alliance, as China's economy shows signs of cooling.