As the investors speculate the U.S. Federal Reserve’s new head will direct a stable course on policy while he addresses lawmakers, the dollar was outmanoeuvred and the global stocks marker further gains.
MSCI’s index of world stocks saw an increase by 0.4 percent, and the pan-European Stoxx 600 was up 0.7 percent.
After the Communist Party of China cleared the way for President Xi Jinping to remain in office indefinitely, Asian markets surged and Chinese stocks increased 1.2 percent.
With the Fed chair Jerome Powell and the heads of Bank of England and the European Central Bank set to give speeches, market’s focus will be mainly on monetary policy. After the fed assured that there were no serious risks on the horizon and there will be steady economic growth, U.S. stock markets took a sigh of relief.
Investors, however, seem to be betting that Powell will stick to that script at his debut appearance before the House, which will be followed by testimony to the senate.
According to Jim Reid, a macro strategist at Deutsche Bank, considering the fact that Powell will be speaking on behalf of the committee; it would be surprising to see any sort of deviation from the recent Fed commentary. However, let’s see how he is able to handle the scrutiny.