Shares Once Again Peaking, Jerome Powell To Be Heard

Market Reviews

Stocks are demonstrating some decent gains. DOW rose 399.28 points (1.58%) to 25709.27. NASADAQ increased 11.15% at 7421.46. Nikkei surged over 300 points (1.4%). In the meantime, 10 year yield fell -0.012 to close at 2.859. New Zealand trade balance marked the deficit of -566 million Kiwi in prior month. Today, Eurozone will publish M3 and confidence figures, Germany will announce Consumer Price Index and US will feature trade balance, wholesale inventories, durable goods orders, house price indices as well as consumer confidence. Tomorrow, the European Union will release a 100-page draft Brexit treaty, which will lay out EU view on the whole divorce process.

Today’s key event is Jerome Powell’s speech before the House of Representatives and the Senate. The new Fed Chair is expected to give his comments about a $300 billion increase in federal outlays, the balance sheet lowering and most importantly, his feelings about Fed plans on rates. Randal Quarles (Fed Governor) shared his positive outlook of the US economy, claiming that: "Some of the factors that have been holding back growth in recent years could shift, moving the economy onto a higher growth trajectory." The Governor added that recent tax reduction "will also likely boost investment and increase the capital stock."

Yesterday, Mario Draghi testified before the European Parliament Economic. ECB President insisted on restricting the stimulus while monitoring the economic expansion and decline of unemployment. He explained that “the uncertainty surrounding the measurement of economic slack, the true amount may be larger than estimated, which could slow down the emergence of price pressures." The whole speech pointed that ECB is not planning to change its policy framework.