Markets brace for Powell’s testimony
US indices were mixed yesterday ahead of the first of Fed Chairman Powell’s testimony later today. Oil prices are higher after weekly data showed a strong drawdown and reports circulated of a possible cyclone building in the Gulf of Mexico. Bank of Canada is expected to leave rates unchanged.
US30USD Daily Chart
he US30 index fell for a third day yesterday but did recover from one-week lows to close only slightly in the red
The 100-day moving average at 26,057 is edging closer to the 55-day average at 26,107
Aside from Powell’s testimony on Capitol Hill, the minutes of the last Fed meeting will also be released today. Markets expect a dovish tone to discussions.
DE30EUR Daily Chart
The Germany30 index fell for a fourth day yesterday with Deutsche Bank shares still under pressure and disappointing guidance from BASF
The index touched the lowest in almost two weeks and is falling toward the 55-day moving average at 12,202
There are no major data releases from either Germany or the Euro-zone scheduled for today. ECB’s Lane said ECB remains ready to act to keep inflation on track, adding they have the tools necessary if more easing is needed.
CN50USD Daily Chart
The China50 index fell for a sixth straight day yesterday, the longest losing streak since February 2017
The index touched the lowest level in two weeks and is falling toward the 55-day moving average at 13,142
Official trade negotiations restarted yesterday by phone. They were described as “constructive”. China’s new loans are seen rising by 1.7 trillion yuan in July, according to the latest survey of economists. That would bring the total for the first seven months of the year to almost 10.8 trillion yuan ($1.56 trillion).
