(CercleFinance.com) – The New York Stock Exchange should open Tuesday’s session as it had ended the day before, i.e. around equilibrium, in favor of a slight drop in bond yields .
Half an hour before the opening, the ‘futures’ contracts on the main New York indices are all or almost unchanged, announcing a start to the session without much change.
Investors seem willing to want to delay a few minutes before Jerome Powell’s intervention, due to follow his renewal as head of the Fed.
The latter will speak this morning before the US Senate on the occasion of his post-appointment hearing by the Committee on Banking Services, Housing and Urban Planning.
After the restrictive tone of the Fed’s ‘minutes’ unveiled last week, investors are waiting to be reassured, at least in part, about the central bank’s interest rate intentions.
In the meantime, the easing in bond yields offers a welcome lull in equity markets.
Yields on US Treasuries have started to fall again since yesterday and the ten-year returns this morning to 1.7680% after having flirted with the level of 1.80%, a new high since the pandemic.
It is in this particular context that market participants will learn, tomorrow morning, the latest inflation figures in the United States.
Traders know that data above consensus could lead to a further rise in government bond yields and rekindle fears about future rate hikes.
In addition, investors seem unwilling to commit too much before the start of the ‘season’ of quarterly results, which will kick off on Friday by banking giants JPMorgan Chase, Citi and Wells Fargo.
No major indicator is expected this Tuesday.
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