European shares were building on Thursday's session and were on track to end this trading week on a high note, as investors on both sides of the Atlantic await Federal Reserve Chairman Kevin Warsh's speech in Wyoming later.
European indexes rallied at the opening bell. Luxury stocks in Paris were gaining with Hermes topping the CAC 40. In London, miners gained, defense companies fell, and auto stocks rose in Frankfurt.
This year's annual Jackson Hole conference is seen by some analysts as "one of the more meaningful" in some time as inflation remains above the Fed's target, deficits are a renewed focus, and amidst fears Warsh is biased toward lowering rates, Catalyst Funds said.
The conference has previously presided over major shifts in Fed policy guidance and what Warsh today says, or doesn't say, has the potential to move the market in a considerable way, according to Swissquote.
Given his aversion to forward guidance, there is a risk markets judge his comments as insufficiently forceful on inflation and, in that scenario, the dollar can fall.
