Markets Flats Ahead Jackson Hole; Asian Equities Rally, Crypto Retreats

Global markets were mostly flat on Monday as investors awaited critical developments this week—including the Jackson Hole Symposium and ongoing Ukraine peace talks. Oil prices and the U.S. dollar wavered in narrow ranges, reflecting heightened geopolitical uncertainty and subdued risk sentiment.

Asian Stocks Extend Gains, Crypto Retreats After Record Highs

In contrast, Asian equities pushed higher on growing expectations of monetary easing. Japan’s Nikkei and Taiwan’s indices surged to fresh record highs, while China’s blue-chip stocks climbed to their strongest level in 10 months.

The rally was underpinned by robust U.S. tech earnings and a rising consensus—now at around 85% probability—that the Federal Reserve will deliver a rate cut in September. However, optimism was tempered after last Thursday’s Producer Price Index (PPI) showed a surprise upside.

The stronger-than-expected producer inflation raised concerns that cost pressures could eventually filter through to consumers, potentially delaying the Fed’s rate-cut timeline or reducing the size of the cut.

Cryptocurrencies also saw profit-taking after last week’s record-breaking rally. Both Bitcoin and Ethereum pulled back as traders rebalanced positions ahead of major macro catalysts.

Caution Ahead of Jackson Hole

Broad risk sentiment showed a mild downside bias as investors positioned defensively before the Jackson Hole Symposium. Equities edged lower globally, while cryptocurrencies saw sharper pullbacks given their higher sensitivity to shifts in risk appetite.

“The recent pullback in equities and crypto is largely a profit-taking move after a strong rally, as markets turn cautious ahead of key events this week,” said Shawn Lee, Senior Analyst at Ultima Markets.

BTC/USD, Daily Chart Analysis | Source: Ultima Market MT5

From a technical perspective, Bitcoin is facing profit-taking pressure near the key $125,000 level. However, the broader uptrend remains intact as long as the $112,000 support holds. A sustained break below that threshold could open the door to a deeper sell-off.

“A sharper sell-off in Bitcoin may require a stronger risk-aversion catalyst—and that could well be shaped by the outcome of the Jackson Hole Symposium,” noted Shawn Lee, Senior Analyst at Ultima Markets.

For cryptocurrencies, volatility is likely to remain elevated as traders balance the strong medium-term bullish trend against the risk of policy-driven shifts in global liquidity conditions.

What’s Next?

All eyes now turn to the Jackson Hole Symposium, where Federal Reserve Chair Jerome Powell is expected to provide critical guidance on the monetary policy outlook. Markets are eager for confirmation of a September rate cut, but any signal of caution—particularly in light of the upside surprise in U.S. producer prices—could temper dovish bets.

Beyond Jackson Hole, U.S. inflation and labor data in the coming weeks will be decisive in shaping expectations for the Fed’s policy path into year-end. A resilient inflation profile could force policymakers to take a more gradual approach to easing, while weaker data may strengthen the case for multiple cuts.

Disclaimer

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