Craig Erlam, senior market analyst at Oanda, said: "The Jackson Hole Symposium is the obvious event people will be most interested in, with both Federal Reserve Chair Janet Yellen and ECB President Mario Draghi making an appearance". Draghi's speech will be on the topic of the Symposium 'Fostering a Dynamic Global Economy, indicating a shift to a broader agenda and is unlikely to signal a change in policy stance until the next meeting.
The major US index futures are pointing to a higher opening on Tuesday following the lackluster performance seen in the previous session. The Federal Reserve, which is further ahead thanks to a faster recovery in the United States, started raising interest rates in December and has bought more than $4.5tn of assets (£3.5tn). Draghi will deliver no new policy messages during this week's conference at Jackson Hole, sources say. The market looks short-gamma outside Friday's ranges and may end up in chasing price action, said the traders, who asked not to be identified as they weren't authorised to speak publicly.
Gold stocks showed a significant move to the upside, however, with the NYSE Arca Gold Bugs Index climbing by 1.7 percent.
While the German DAX Index has jumped by 1 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index are both up by 0.7 percent.
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Gold will be an interesting asset class in the weeks ahead - the Dubai Gold and Commodities Exchange (DGCX) gold contract was trading 1.5 per cent higher in August and supported by the risk off mood driving markets in the past two weeks. Bond prices move in the opposite direction of yields.
There were few attention grabbers on a very sombre Monday trading session as the market was left recirculating headlines in thinly traded conditions. If anything inflation is still weak in many economies and the "transitory" description of price growth heard earlier this year from Ms Yellen and the Fed is no longer the case, weak price growth is now a fact.
Meanwhile, the euro fell against the dollar yesterday, giving back most of its overnight gains as gains by the dollar prompted investors to square positions before a central bank conference this week.
But even then overall emerging borrowers' euro debt is dwarfed by the $1.7 trillion they owe in dollars. It estimates $200-$300 billion flowed to emerging stocks and bonds annually during the peak years of the Fed's bond buying in 2012-2013.
Any hawkish rhetoric from Draghi would trigger sustained upward pressure on the Euro while a more dovish slant and indications of concern over the Euro's level would be likely to push the single currency lower.