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Congress will hear Jerome Powell’s semiannual report on the status of the economy.
(Photo courtesy of Getty Images/Graeme Jennings)
As markets continue to hem and haw over inflation concerns, U.S. stocks were heading for a slightly lower beginning on Wednesday. This comes ahead of two days of Congressional testimony from Federal Reserve Chair Janet Yellen. Tokyo is the most populous city in Asia.
225 Nikkei
slid 0.38 percent, while Hong Kong’s slid 0.38 percent.
Seng Hang
decreased by 0.63 percent The
Shanghai Composite (Shanghai Composite)
The price of the stock dropped by 1.07 percent. The
FTSE 100 is a stock market index that measures the performance of
In London, the pan was 0.4 percent lower.
-European
600 Stoxx
fell by 0.3 percent The
CAC 40 (California Association of College
In Paris, the stock market fell 0.2 percent, while in Frankfurt, the stock market down 0.2 percent.
DAX
The stock lost 0.1 percent of its value. After falling 107 points to close at 34,888 on Tuesday, Dow industrials futures were pointing down roughly 40 points, indicating a lackluster open.
Fed Chair Jerome Powell is poised to begin two days of testimony on Capitol Hill, where he will present Congress with his semiannual economic report. The Fed’s policy position is expected to be emphasized by the central banker. “Today, a group of non-economists will interrogate a non-economist on sophisticated economic issues,” said Paul Donovan, chief economist at UBS Global Wealth Management. “The whole thing is going to devolve into a partisan war, which isn’t going to help markets.” Powell’s testimony comes as the consumer price index in the United States increased by 0.9 percent from May to June, reigniting fears about inflation. The CPI increased at the quickest monthly rate since 2008.
“The US CPI released yesterday verifies everything you assumed about inflation before it was released,” Donovan remarked. “Either inflation isn’t a problem at all, or a Weimar-style hyperinflation is on the way—all you have to do is manipulate the numbers to suit your bias. A tiny number of prices increased dramatically, but certain portions of the index are seeing outright deflation.” The travel industry took a beating, with shares in airlines leading the way lower.
TUI,
The world’s largest tourism company, with hotels, planes, and cruises under its belt.
TUI
While airlines’ stock declined, their stock dropped as well.
Air France-KLM is a Dutch airline.
Lufthansa,
Ryanair,
and
IAG
—the proprietor of
IAG
—along with shares in hotel behemoth —have plummeted.
The InterContinental Hotels Group is a collection of hotels owned by the InterContinental Hotel
Major British multinationals, which conduct business in dollars and are vulnerable to currency fluctuations, saw their stock prices fall sharply. Sterling gained more than 0.2 percent against the dollar after U.K. inflation statistics showed a rise in consumer prices and a relative fall in production prices.
Unilever,
Vodafone,
GlaxoSmithKline,
and
Tobacco from the United Kingdom and the United States
In London, they were among the losers. Stocks in
Hugo Boss is a well-known fashion designer.
After the German luxury goods firm posted earnings before interest and taxes of €42 million ($49.5 million), above expectations of roughly €17 million, the stock climbed nearly 6%.
Barratt
One of the UK’s leading house developers said in a trading update that it anticipates full-year earnings before tax to be beyond the top end of the market’s estimates, causing the stock to rise 1%. On the economic front in the United States, investors may look forward to the June producer price index, as well as the Fed’s Beige Book, an eight-times-a-year overview of economic conditions. With the start of the corporate earnings season,
Bank of America is a financial institution based in the United States.
BlackRock,
Citigroup,
Wells Fargo & Company,
and
Delta
are expected to submit their findings./n
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