Equities mixed heading into Powell's testimony
Equities are trading tentatively ahead of Fed chair Powell's testimony today. In the Asia Pac area, the Nikkei 225 traded 0.15% lower, the Shanghai Comp. lost 0.57% and the ASX managed to trade 0.36% higher. The ASX was buoyed by the big 4 banks being rated well by the credit agencies and there was also a good performance from the tech sector.
In the commodities markets, spot WTI pushed higher yesterday and overnight after API crude oil inventory data produced a draw of 8.129mln vs market expectations of 3.100mln.
Copper is also trading well heading into the EU session as the price bounced off of a key technical support level just ahead of the psychological $2.60/lb zone. It has also been said by some financial news agencies that there was a "constructive phone call" between US and Chinese trade delegates overnight.
Gold has moved lower leading into Fed chair Powell's testimony today maybe the markets are expecting the chairman to be hawkish following last week non-farm payroll results.
Today we are on the lookout for UK GDP, UK industrial production, UK manufacturing production, UK trade balance, BoC rate decision and comments from Fed's Powell, BoE's Tenreyro, Fed's Bullard and the Bank of Canada.