Stocks should hesitate before Powell's hearing and new results in the us banking sector. The Eurostoxx 50 opened at 4,094.56 points up 0.03%, the CAC 40 at 6,558.47 points (-0.01%), the DAX 30 at 15,789.64 points (-0.01%), the FTSE 100 at 7,124.72 points (-0.01%), the SMI at 12,071.05 points (-0.09%), the AEX at 742.86 points (+0.60%), the BEL 20 at 4,211.77 points (+0.04%), the IBEX 35 at 8,694.80 points (-1.38%), the DJIA at 34,888.79 points (-0.31%), the Nasdaq at 14,677.65 points (-0.38%), the S&P 500 at 4,369.21 points (-0.35%) and the Nikkei 225 at 28,635.39 points down 0.29%.

As far as the exchange rate is concerned, the change from the close in New York  indicates that the EUR/USD is up 0.05% at 1.1782%. EUR/JPY lost 130.18 (-0.09%) and USD/JPY lost 110.50 (-0.12%).

 The main European equity indices are expected to change little on Wednesday at the opening, in a tense climate before a new series of results in the US banking sector and the semi-annual hearing of the Chairman of the Federal Reserve (Fed), Jerome Powell, in front of Congress. At 7:30 a.m., the CAC 40 futures contract gained 1.4 points, or 0.02%, according to data from broker IG Markets. The DAX 30 contract was down 18.5 points, or 0.1%, and the FTSE 100 contract was down 3 points, or 0.04%. After JPMorgan and Goldman Sachs whose results highlighted a sharp decline in market activity revenues in the second quarter, Bank of America, Citigroup and Wells Fargo will unveil their accounts for the same period on Wednesday. Jerome Powell, who will address the House Financial Services Committee at 6:00 p.m., is eagerly awaited on the future of the Fed's bond-buying programs and is expected to be asked about the acceleration of inflation in the United States. which reached 5.4% year-on-year in June, its highest level in 13 years.

Wall Street ended lower on Tuesday. The Dow Jones Index (DJIA) lost 0.3% to 34,888.79 points, while the broader S&P 500 Index fell 0.4% to 4,369.21 points. The Nasdaq index also gave up 0.4% to 14,677.65. All three indices had set new records on Monday. In addition to the Fed, investors will be paying attention on Wednesday to the monetary policy decisions of the central banks of Turkey and Canada. On the night of Tuesday to Wednesday, the Reserve Bank of New Zealand announced the end of its bond-buying program by July 23. The central bank's monetary policy committee said the risks of deflation and high unemployment related to the Covid-19 pandemic have now receded. Eurozone industrial production figures, producer prices and weekly oil inventories in the United States, as well as the Fed's Beige Book, prepared for the central bank's next meeting at the end of the month, are also expected on Wednesday. In Asia, the main indices fell on Wednesday. At the end of the session, the Nikkei index of the Tokyo Stock Exchange lost 0.3%. The Hang Seng fell 0.6% in Hong Kong and the Shanghai Composite Index gave up 0.7%.

M. Treasury yields are falling again on Wednesday, after recovering the day before due to higher-than-expected inflation in the United States in June and weak demand from a 30-year bond auction. At 7:30 a.m., the yield on the ten-year bond, the market benchmark, stood at 1.402%, against 1.423% on Tuesday night, and that of the 30-year stock was trading at 2.031%, against 2.047%. San Francisco Federal Reserve (Fed) President Mary Daly said the acceleration in inflation was temporary even though she anticipates an early reduction in monetary support from the central bank.

The euro is picking up some colors against the dollar on Wednesday but remains below the $1.18 threshold, while investors are weighing the consequences of the acceleration of inflation in the United States for the Fed's monetary policy. The prices of used cars and categories of goods and services related to the reopening of the economy were the main drivers of inflation in June and the Fed may continue to consider this acceleration as temporary, indicates IG. However, given the rise in the five-year breakeven inflation, investors could adjust their expectations in favor of more persistent inflation, the broker adds.

Oil contracts are losing ground on Wednesday morning as concerns about rising Covid-19 cases in several countries continue to weigh on prices. However, crude oil prices could soon benefit from increased market tensions, ANZ reports. At 7:20 a.m. , the September contract for North Sea Brent lost 20 cents, to $76.29 a barrel, and the August contract for light sweet crude (WTI) listed on the Nymex fell 26 cents, to $74.99 per barrel.