Fed’s Powell is expected to deliver monetary policy updates on Wednesday and Thursday
US stocks edged lower at the start the week. The S&P 500 slipped 0.12% Monday, coming off its latest all-time high. The Dow Jones Industrial Average fell 0.25%, and the Nasdaq composite fell 0.41% after notching new records last week. Investors are cautious ahead of this week’s events. Fed’s Powell is expected to deliver monetary policy updates to the House of Representatives on Wednesday and to the Senate on Thursday. The ADP employment survey and job openings data will be released on Wednesday, while nonfarm payrolls data for February is due Friday.
Asian equities were mixed on Tuesday. Japan’s Nikkei 225 index ended just 0.07% higher, South Korean Kospi sank 0.93%, while Australia’s S&P/ASX 200 edged 0.15% lower. Hong Kong’s Hang Seng index lost 2.61% and the Shanghai Composite index rose 0.28% after Beijing set a 2024 gross domestic product target of 5%, the same as 2023. During the 2024 National People’s Congress, the government also promised more measures to increase consumer spending and confidence.
In Europe, stocks opened power, with negative momentum dominating the markets ahead of the European Central Bank meeting later this week. The central bank is expected to hold interest rates steady even as inflation shows more signs of easing. The pan-European Stoxx 600 was down 0.2% in early deals after settling just below all-time highs at the start of the week. U.S. stock index futures edged lower in early pre-market deals.
Meanwhile, the US dollar keeps treading water in a tightening range these days, holding below the 104.00 handle that represents the immediate barrier for bulls. The USD index regained a modest upside bias on Tuesday after yesterday’s slide, but still lacks the momentum to make a more decisive bounce. Traders look indecisive at this stage in anticipation of the mentioned events, with Powell’s speech in focus. Should the Fed Governor deliver a hawkish tone, dollar demand will reemerge across the board.