(CercleFinance.com) – Wall Street should start slightly higher on Tuesday pending the hearing in Congress of Jerome Powell, the head of the Fed, who could provide some indications concerning the evolution of monetary policy in the United States. United.
Half an hour before the opening, the ‘futures’ contracts on the major New York indices advance from 0.1% to 0.2%, suggesting limited gains at the opening.
Investors are expected to limit their activity in preparation for Powell’s appearance before the House Financial Services Committee, which will be the high point of the session.
‘His speech kicks off seven important days for the markets with the release of the US jobs report on Friday and the release of the Consumer Price Index (CPI) due in just a week’, underline the Deutsche Bank analysts.
Jerome Powell could give, during his hearing by parliamentarians today and tomorrow, valuable clues about the timing of interest rate hikes in the United States and the state of health of the American economy.
But strategists do not expect a noticeable change in the Fed’s rhetoric, which is to be ‘hawkish’ (restrictive) in its words, but often ‘dovish’ (moderate) in its decisions.
“We expect (Powell) to repeat that there is still a lot to do on the inflation front, while suggesting that the Fed will continue to raise rates by 25 basis points,” said analyst Mike Schumacher. at Wells Fargo.
On the bond compartment, the return on ten-year Treasuries has changed little, around 3.94%, in a wait-and-see climate before Jerome Powell’s statements.
The dollar, for its part, is beginning a timid rise against the euro, around 1.0650, the greenback honoring its reputation as a safe haven in the face of nervousness with regard to inflation.
In the economic chapter, the monthly figures for wholesale inventories will be the only economic indicator published during the day.
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