Markets remained sidelined ahead of Fed Chair Powell’s testimony tonight, the US dollar and interest rates slightly higher, equities slightly lower.

Markets were fairly well contained overnight, looking ahead to the key event this week – Fed Chair Powell’s testimony to Congress, which may provide clues to a rate cut at month-end.

A strong US jobs report boosted interest rates and the US dollar and capped equities, as markets pared expectations of Fed rate cuts.

Markets were fairly stable during the US holiday. S&P500 futures nudged to a fresh record high, and German bond yields slipped to a record low.

US equities rose to fresh record highs - the S&P500 up 0.8% currently – and US interest rates fell to multi-year lows. Markets expect the low-yield regimes in major economies to continue for some time, and were buoyed by yesterday’s nominations to the Fed and ECB.

US equities rose to fresh record highs - the S&P500 up 0.8% currently – and US interest rates fell to multi-year lows. Markets expect the low-yield regimes in major economies to continue for some time, and were buoyed by yesterday’s nominations to the Fed and ECB.

Equities, currencies, and interest rate markets were fairly well contained overnight, awaiting Friday’s key US payrolls data.

US equity markets gapped higher to fresh records in the wake of the weekend’s US-China trade war truce. Gains were later pared following mixed global manufacturing PMI data, leaving the S&P500 up 0.8% on the day. US interest rates and the US dollar rose.

US equity markets gapped higher to fresh records in the wake of the weekend’s US-China trade war truce. Gains were later pared following mixed global manufacturing PMI data, leaving the S&P500 up 0.8% on the day. US interest rates and the US dollar rose.

Markets on Friday were cautiously optimistic about the weekend’s Trump-Xi trade talks, lifting equities (S&P500 up 0.6%) and the AUD and NZD slightly. The talks did result in a return to negotiations and deferral of tariffs, markets reacting slightly positively at the open this morning.