1. Powell to kick off Fedspeak marathon
After last week’s solid U.S. employment report forced investors to scale back bets for aggressive policy easing from the Federal Reserve, the central bank’s chief, Jerome Powell, will kick off a busy week of appearances from policymakers on Tuesday.
Powell’s Tuesday speech is not expected to make too many waves with the opening remarks at a conference on bank stress testing, but markets will keep the Fed chief in the spotlight ahead of his semiannual report on monetary policy to Congress beginning on Wednesday.
Markets still price in a quarter-point cut at the Fed's July 30-31 meeting, although the jobs report reduced expectations for a half-point cut.
2. Stocks remain cautious ahead of further Fed signals
U.S. futures pointed to a lower open amid fresh concerns for global growth in the light of profit warnings from BASF and others. Dow futures fell 130 points, or 0.5%, S&P 500 futures lost 14 points, or 0.5%, while Nasdaq 100 futures traded down 53 points, or 0.7%.
3. Oil ticks higher ahead of inventory data
Despite concerns over the global economy, ongoing tensions in the Middle East kept oil prices supported on Tuesday ahead of weekly U.S. inventory data.
Iran threatened to restart deactivated centrifuges and step up its enrichment of uranium to 20%, in a move that further undermines 2015 nuclear agreement that Washington abandoned last year, but which the UN still backs.
On Tuesday’s agenda, the American Petroleum Institute will release its weekly report on U.S. crude stockpiles last week.
The U.S. Energy Information Administration will release its official government data on Wednesday amid expectations for a draw of 3.6 million barrels.
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