- US equity futures fell Friday and treasuries fell as a chorus of Federal Reserve hawks prepared the ground for chair Jerome Powell's much-anticipated speech, which is expected to shape views on the pace of monetary tightening.

- After Wall Street's rally on Thursday, the S&P 500 and Nasdaq 100 contracts were in the red. The 10-year treasury yield rose five basis points to 3.08%. The dollar remained stable. In addition to Powell's speech later on Friday, traders will be watching a slew of US data, including personal spending and the Fed's preferred measure of inflation, both of which are expected to show easing price pressures.

- European stocks reversed gains, putting the benchmark Stoxx Europe 600 index on track for a second weekly drop, with media and travel sectors leading the way. Miners rose as iron ore, copper, and other industrial metals prices rose in response to China's latest stimulus package. European sovereign bonds fell in value.

- When he speaks at 10 AM Washington time on Friday in Jackson Hole, Wyoming, Powell may reiterate the Fed's determination to keep raising interest rates to combat high inflation. Fed officials attending the conference are already singing from a hawkish script, rejecting expectations of tempered tightening.

- Elsewhere in geopolitics, Belarus' President Lukashenko stated that Belarusian planes are ready to carry nuclear armament. PLA Air Force Spokesperson Jinke also said that the PLA is accelerating air defense and anti-missile construction to remain prepared for war at any time, but this is not aimed at any specific country or region.

- Ofgem announced that the UK energy price cap will increase to £3,549 per year for dual fuel for an average household, commencing from 1 October 2022.