The European stock exchanges are expected to open sharply before Powell's hearing before Congress. The Eurostoxx 50 opens at 3,494.00 points (+0.70%), the CAC 40 to 5,964.66 points (+0.75%), the AEX to 648.03 points (+1.03%), the BEL 20 to 3,736.32 points (+0.37%), the IBEX 35 to at 3,736.32 points (+0.37%), the IBEX 35 to at 8,235.60 points (-0.61%), the DJIA at 30,530.25 points (+2.15%), the Nasdaq at 11,069.30 points (+2.51%), the S&P 500 at 3,764.79 points (+2.45%), and the Nikkei 225 at 26,246.43 points (0.00%).
On the exchange rate side, the change compared to the close in New York indicates that EUR/USD stands at 1.0503 (-0.29%), EUR/JPY at 143.18 (-0.51%), and USD/JPY at 136.32 (-0.23%).
European equity markets are expected to open sharply on Wednesday, as investors anxiously await the hearing of Federal Reserve (Fed) Chairman Jerome Powell before Congress. At 7:40am, the CAC 40 futures contract lost 72 points, or 1.2%, according to data According to IG Markets, the DAX 40 contract fell by 155 points, or 1.2% as well, and the FTSE 100 contract dropped 63 points, or 0.9%.
In Asia, the main indexes are also down on Wednesday. At the end of the session, the Nikkei index fell 0.1% in Tokyo, the Hang Seng lost 1% on the Hong Kong Stock Exchange, and the Shanghai Composite fell by 0.2%.
Investors hope that Jerome Powell's speech will allow them to determine whether the Fed will raise rates by 50 or 75 basis points after its next meeting. According to the CME Group FedWatch tool, the probability of an increase of 75 basis points is 95.7%. Wall Street finished strongly higher on Tuesday, rebounding from last week's biggest weekly decline since 2020. The Dow Jones Index (DJIA) gained 2.2% on Tuesday, to 30,531.77 points, while the expanded S&P 500 gained 2.5%, to 3,764.80 points. The Nasdaq Composite won 2.5% to 11,069.30 points.

After a long weekend in the United States, US Treasury bond prices fell on Tuesday, boosting yields.
Bond market investors will focus on Jerome Powell's speech on Tuesday. “The recession remains the main concern of investors,” said Raffi Boyadjian of XM, stressing that the market rebound at the beginning of the week was mainly due to a technical correction after two weeks of collapse.

The euro fell back against the dollar on Wednesday, which benefited from a new risk-aversion movement in the market. Continued concerns about growth, inflation, and tight financial conditions will deter investors from taking risks, Maybank analysts say, adding that the focus will be on Jerome Powell, who is due to appear before the US Congress on Wednesday. .

With caution returning to global markets, oil prices fell by more than 3% on Wednesday morning. “Investors are worried that the Fed will feel compelled to respond forcefully to rising inflation and consumer price expectations if energy prices continue to rise,” said Stephen Innes, managing director of SPI Asset Management. Around 7:30am, the August North Sea Brent contract lost $3.50, or 3.1%, to $111.15 per barrel. The same-term contract for mild mild crude oil (WTI) listed on Nymex dropped $3.69, or 3.4%, to $105.83 per barrel.