Author: Peter Nurse
Investing.com – Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen’s testimony session in Congress will be in the limelight of the markets Tuesday. Previously, increasing Covid-19 cases in Europe, which resulted in Germany increasing restrictions on mobility, put pressure on oil prices and stock markets. President Erdogan, Turkey’s central bank manage the market after the impeachment because it is still very hawkish tactics floating face again while AstraZeneca vaccination days. US housing data will be shared, and UK employment data surprised the increase.
Here’s what you need to know in financial markets on Tuesday, March 23rd.
1. Powell and Yellen will face questions in Parliament
Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen will begin their two-day testimony before the House Financial Services Committee in Congress on Tuesday. They will discuss the health of the US economy and the importance of fiscal and monetary stimulus in recovery from the epidemic.
US Treasury returns rose to a year high as financial markets bet that the US economy would recover from the damage from the epidemic faster than the central bank’s forecast. So the two may face many questions from a politically divided Congress as to whether these returns will continue to rise amid fears that the economy will overheat.
However, looking at the published quotes from his prepared statement, Powell will reinforce the central bank’s plans to support recovery “no matter how long it takes” as the economy remains below pre-epidemic levels. The labor market, in particular, remains a concern for the Fed. The unemployment rate and labor force participation rate are still below pre-epidemic levels.
For the past two months, Yellen reiterates that the US can handle more borrowing at historically low interest rates and that even if the debt level is high, the cost of meeting these obligations will be the same as in 2007.
2.AstraZeneca’s (NASDAQ 🙂 Covid-19 vaccine is not completely cleared
AstraZeneca management must have felt they finally got a chance on Monday, after data from the US trial showing that the Covid-19 vaccine was 79% overall and 100% effective in preventing serious illnesses and hospital treatment.
However, it turned out that this was not the case. The US health agency cast doubt on its plan to obtain US emergency use approval for the vaccine in the coming weeks, asking the company on Tuesday whether it has provided all of the vaccine-related efficacy data.
According to the US National Institute of Allergy and Infectious Diseases, the Data Security Monitoring Board expressed “concern that AstraZeneca may have included outdated data from the experiment, which may have provided an incomplete overview of efficacy data”.
AstraZeneca vaccine has faced concern over its efficacy, dosing regimen, and possible side effects. Many European countries, along with Germany and France, stopped using the vaccine earlier this month after reports of a rare blood clotting disease.
3. Stock markets will open low; Europe falls over Covid-19 concerns
US markets will open with small decreases on Tuesday. Trade is cautious as investors await Fed Chairman Powell and Treasury Secretary Yellen.
It fell by 150 points and fell by 0.4% and 0.2%.
Tuesday is the anniversary of the bottom of the turmoil caused by the epidemic. Since its lows during the day and has experienced an increase of over 80% and 90%.
The expected casualties on Wall Street followed the weakness in Europe. European stock markets withdrew from a year’s high as fears of a slow economic recovery were mounting due to a new wave of coronavirus and extended quarantine in Germany.
This was in addition to Turkey markets continued to fall. The main stock market index fell 7% after President Tayyip Erdogan abruptly dismissed the hawk central bank governor at the weekend and criticized the country’s tight monetary policy stance. also remained volatile, but partially compensated for the huge losses it suffered on Monday.
4.US housing data, UK unemployment rate
Minutes from the latest Fed meeting state that the central bank will review real economic data for monetary policy, while interest on Tuesday will be in the latest housing market figures.
This sector has benefited the most from the epidemic, with a large number of people turning to refuge from densely populated cities in the suburbs. But things are calm: Monday’s data showed a drop in buyers.
For the data will be released at 17:00 UTC and analysts expect February figures to decrease 6.5% compared to the previous month.
It fell unexpectedly to 5.0% on Tuesday, below the UK’s expectations of a rise to 5.2% in the three months through January. The country had entered a new quarantine at that time.
5.Oil hit with coronavirus restrictions in Europe
Crude oil prices weakened on Tuesday amid growing concerns that rising numbers of cases in Europe will slow the recovery in demand, especially ahead of the summer tourist season.
futures fell 3.5% to $ 59.42 and fell 3.5% to $ 62.37.
Germany, Europe’s largest oil consumer, extended the quarantine until April 18 with its decision on Monday and called on its citizens to stay home during the Easter holidays to prevent the third wave from hitting the continent.
One blow to the tourism industry was that people trying to travel abroad from the UK before the end of June would be fined £ 5,000 ($ 6,900) for the country’s increased border controls.
OPEC + will meet on April 1 to determine the production policy for May.
In a research paper, ING analysts said, “market turmoil will give OPEC + something to think about before the meeting.” “Obviously, it was expected that OPEC + would start reducing cuts before the last downward pressure. But the group may be more hesitant to do this now, especially if the feeling does not change before the meeting. “
Prior to the meeting, the American Petroleum Institute (API) will be announced.