Global Markets Await Fed Signals as Regional Divergences Emerge

Global markets opened the week with cautious trading as investors await key signals from the Federal Reserve's Jackson Hole symposium. The Nasdaq eked out modest gains while the Dow and S&P 500 slipped, reflecting uncertainty about the Fed's next move. Fed funds futures currently price in an 80% chance of a 25-basis-point cut in September, though political pressures complicate the central bank's messaging.

Asian markets showed particular sensitivity to Fed expectations, with Japan's Nikkei surrendering early gains as SoftBank's Intel-linked slump weighed on sentiment. Dollar-yen stability and weaker U.S. futures pointed to defensive positioning across the region.

European markets bucked the tentative trend, finding support from geopolitical developments. The Euro Stoxx 50, DAX and FTSE futures all pointed higher amid Optimism surrounding diplomatic engagements, demonstrating the fragmented nature of current market drivers.