US markets closed overnight for the Juneteenth holiday. Global equities are down, falling from 14-month highs hit last week as markets awaited testimony from Fed Chair Powell in markets dominated by monetary policy bets. No change in the broader narrative, European markets are in a holding pattern ahead of monetary decisions from BoE, Swiss National Bank and Norges Bank. European markets down, FTSE 100 -0.71%, DAX -0.96%, CAC40 -1.01%, and STOXX 600 -1.02%. SPI Futures up 12 points (+0.17%).

ECB officials continue to sound hawkish since last week’s policy decision to raise rates by 25bps as inflation could come in higher than it expects, two ECB officials said overnight, despite the banks chief economist opening the door to a pause and warnings that the Governing Council may be underestimating disinflationary trends and liquidity risks posed by TLTO repayments. Markets see a greater than 50% likelihood of terminal rate of 4%, with one more rate hike in September or October this year.

• Gold eased 0.39% as the US dollar strengthened ahead of Fed Chair Powell's congressional testimonies.
• The dollar index edged up 0.27% from a one-month low, making metals less attractive for buyers holding other currencies.
• Copper prices faced pressure, down 0.38% due to a lack of detail on economic stimulus in China and a firmer dollar.
• Nickel -1.83% Aluminium -1.21% Zinc -1.7%, Lead +0.16%, Tin +5.22%.
• WTI crude fell 2.11% and Brent fell 0.17% as China’s GDP growth forecast was downgraded.

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