Low-volume night in the US dominated by Powell’s testimony (see below) which was seen as a little less hawkish. The Fed remain data dependent (seen as a positive). Tech stocks led with the NASDAQ up 1.18% and the other markets flat. The Bank of England raised rates by 50bp, more than expected, although the UK market (FTSE) only fell 0.76%. The odds of a Fed rate rise at the next meeting on July 26 rose from 74.4% to 76.9%. Weekly jobless numbers hit a 20 month high and the Leading Economic Index fell for the 14th time on the trot. The energy sector was the worst-performing sector on the back of a 4% fall in the oil price.

ASX to open lower SPI Futures down 7 points (-0.10%).

European markets are down for a third consecutive session. STOXX 50 -0.42%, FTSE -0.76%, CAC -0.79%, and DAX -0.22%. The BoE likely dampening sentiment as they raise rates to a 15-year high. 

• Gold finished 0.97% lower, hitting a 3-month low as Powell's testimony wrapped up.
• Copper rose 0.13% as Inventories in LME Warehouses hit the lowest level since October 2021
• Nickel -0.2% Aluminium -0.4% Zinc -0.17%, Lead +0.23%, Tin -0.42%.
• WTI Crude fell 4.66% and Brent fell 3.64% on fears interest rates will continue to climb, reducing demand for Crude.
• 10-year yield: US 3.79%, Australia 4.01%, and Germany 2.49%.

Catch up on all the latest with Henry Jennings on today’s Pre-Market Podcast.

Why not sign up for a free trial? Get access to expert insights and research and become a better investor.

Make life simple. Invest with Marcus Today.