The Euro Stoxx Volatility Index has experienced an uptick this week, reflecting investor anxiety ahead of Federal Reserve Chairman Jerome Powell's highly anticipated speech at the Jackson Hole Symposium. Despite hints from three Fed officials on Thursday suggesting a potential rate cut in September, coupled with their support for a "slow and methodical" approach to rate reductions, market participants remain cautious about any unexpected shifts in Powell's address tonight.

U.S. stocks saw a decline overnight, further contributing to the market's nervousness. Daniela Hathorn, senior market analyst at Capital.com, commented on the situation: "Powell never provides very clear information. We will get confirmation about the rate cut today, but I would not be surprised if he still shows hesitation."

Meanwhile, the pan-European Stoxx 600 index is poised to post a 1% gain for the week, marking its third consecutive week of gains—a streak not seen in nearly five months. However, it continues to underperform compared to the S&P 500 for the year. Hathorn noted, "There’s still momentum in the U.S. because we still haven’t seen rate cuts. But the ECB has already started cutting rates, earnings are starting to weaken, and what else is there to drive growth? That’s where investors are right now."