Stocks higher with Yellen’s speech in focus

European markets got off to a slightly higher start to the beginning of the week, as investors trod cautiously ahead of the US Federal Reserve’s Jackson Hole meeting this week which could produce some hints about the timing of a further interest rate hike.

The US dollar was higher against major currencies including the yen, euro and sterling after Fed vice chairman Stanley Fischer said on Sunday that the US economy was close to hitting the central banks targets for full employment and 2% inflation.

Trade in Asia was mixed after Monday’s session. Oil prices were in the spot light, trading sharply lower. Brent and crude prices pulled back as analysts doubted that OPEC would make any decision on freezing supply when it meets in September. Markets were still worried that there is an oil glut, which would put pressure on prices. Gas stocks traded mixed, with the likes of Statoil in the red.

A stronger dollar also weighed on metal prices as it hampers demand by making the asset more expensive for those buying in other currencies. Precious metals miner Fresnillo was in negative territory amid a fall in the price of gold, while other big miner firms such as Glencore and Anglo American also traded lower. The basic resources sector was one of the worst performers in early trade.

In European, stocks pushed higher during trade on Monday, with all sectors in the green. Financial and telecoms were the way with gains. The FTSE 100 was marginally higher, but has been darting between minor losses and gains. The index on Friday fell 0.2% and ended the week with a 0.8% loss, its first weekly decline in three weeks.

Elsewhere, shares of automobiles started the week in positive territory. Volkswagen shares leaded the way with gains, as it was trading over 1.5% higher during early morning trade on Monday. Similarly, Daimler, BMW and Renault were all trading higher.

But at the top of the Stoxx 600 was Syngenta. Shares jumped 11% after a US national security regulator cleared the proposed $43 billion purchase of the Swiss seed maker by China’s National Chemical Corp. Syngenta’s rally helped push Switzerland’s SMI up 0.9%.

The US Central bank will be of key importance this week for investors, as its Chair Janet Yellen is set to give a speech on Friday at the Federal Reserve Bank of Kansas City’s annual Economic Policy Symposium at Jackson Hole, Wyoming. Investors will be looking to the Fed to see if it will shed some light as to when it may raise interest rates, while giving a long-term outlook on the state of the US economy.