Japan’s Nikkei index reached a record high on Tuesday, climbing 1.5% due to gains in semiconductor shares. Meanwhile, global investors are keenly watching Federal Reserve Chair Jerome Powell, who is set to address Congress amid expectations of rate cuts following signs of a cooling U.S. labor market.
European markets are expected to open lower, with EUROSTOXX 50 futures down 0.3% and FTSE flat. In the U.S., S&P 500 futures rose 0.2% and Nasdaq futures increased 0.3%, continuing Wall Street’s positive momentum.
In Asia, the MSCI Asia-Pacific shares index remained flat, Taiwanese shares saw a slight decline of 0.3%, Chinese blue chips edged up 0.1%, and Hong Kong’s Hang Seng index fell 0.3%. Powell’s testimony is crucial as markets anticipate a potential rate cut in September, with an 80% probability priced in.
The U.S. consumer price report on Thursday is also a key focus, with inflation expected to slow. The euro held steady at $1.0825, the U.S. dollar remained near four-week lows, and the Japanese yen and Chinese yuan showed signs of stabilization.
In commodities, gold inched up 0.2% to $2,363.31 an ounce, while oil prices fell slightly due to less-than-expected hurricane damage in Texas, with Brent and WTI futures both down 0.3%.