Equities down ahead of Powell testimony - 23.3.2021

The Dollar strengthening has resumed currently . The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, shed 0.17% Monday as sales of existing homes in the United States fell 6.6% over month in February.

Both EUR/USD and GBP/USD reversed their sliding Monday despite German federal statistics bureau Destatis report Germany’s current account surplus rose less than expected in January. Both euro and Pound are lower currently against the Dollar. AUD/USD reversed its sliding while USD/JPY continued its retreating yesterday with Australian dollar lower against the greenback currently while yen is higher still.

Futures on three main US stock indexes are lower currently ahead of Treasury Secretary Yellen and Fed Chair Powell congressional testimony at 15:00 CET today. In prepared remarks Fed Chair Powell wrote that the US recovery had progressed “more quickly than generally expected and looks to be strengthening”. The three US main stock benchmarks recorded gains ranging from 0.3% to 1.2% Monday.

European stock indexes are mixed currently after ending marginally higher yesterday while travel and leisure names took a beating Monday as fears resurfaced for a third wave of coronavirus infections in Europe. Asian indexes are mostly down today with Hong Kong’s Heng Seng Index leading losses after United States and the European Union sanctioned Chinese officials overnight for human rights abuses in Xinjiang, and Beijing hit back with punitive measures against European lawmakers, diplomats, institutes and families.