Top 4 Things to Know in the Market on Wednesday

1. Powell testimony

Powell is set to testify on the economic outlook before the Congressional Joint Economic Committee in a hearing starting at 18:00 (GMT+2). He is expected to reiterate that monetary policy is on pause for the remainder of 2019, following three consecutive rate cuts this year aimed at offsetting the effects of the global growth slowdown brought on by the U.S.-China trade war.

Powell’s testimony comes a day after Trump said a trade deal with China was “close” but threatened to "substantially" increase tariffs if no deal was reached. He also took a swipe at European Union trade policies, rattling investors who were expecting some breakthrough, or even some new signal, on trade.

Trump also repeated his criticism of the Fed, blaming it for the slowdown in the economy and for failing to cut interest rates deeply enough.

2. Public hearings in Trump impeachment inquiry get underway

Ahead of Powell’s testimony, the House of Representatives will convene the first public hearings in Trump's impeachment inquiry at 10:00 AM ET (15:00 GMT). They will be the first impeachment hearings to be held in public in 20 years.

The probe centers on whether Trump pressured Ukraine to investigate Democratic presidential contender Joe Biden and his son, Hunter Biden and any reaction by the president could be significant.

3. U.S. futures indicate lower open; Cisco earnings due

U.S. stock market futures pointed to a lower open, with Dow futures shedding more than 100 points, while S&P 500 futures and Nasdaq 100 futures were also down amid trade war jitters.

European shares retreated from four-year highs earlier, while concerns that intensifying unrest in Hong Kong could prompt a Chinese crackdown pushed Hong Kong shares 2% lower overnight and weighed on markets across Asia.

Cisco Systems (CSCO.US) reports fiscal first-quarter results after the closing bell Wednesday against a challenging backdrop that includes concerns that weakness in the global economy and softening cloud demand may weigh on performance. Other reports on Wednesday include Hewlett Packard Enterprise (HPE.US) and Foxconn (2354.US).

4. U.S. inflation data due

U.S. inflation data for October is due at 8:30 AM ET (13:30 GMT), with economists expecting the consumer price index to rise 0.3%, up from 0.1% in September, while the core CPI , which excludes volatile food and energy prices, is forecast to rise 0.2% from 0.1% a month earlier.

Year-over-year CPI growth is seen staying at 1.7% with core CPI edging up to 2.4%.

In the U.K., data earlier showed that inflation fell to its lowest level in nearly three years last month amid a cap on energy prices. At 1.5%, inflation has now moved further below the Bank of England’s 2% target, which could increase the likelihood of interest rate cuts.

In the Eurozone, data showed that industrial production increased by 0.1% in September. It was the second consecutive month of expansion, indicating that a downturn in the bloc may be moderating.

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