Powell Reloaded, German gas alarm, unemployed demands


© Reuters.

By Geoffrey Smith

Investing.com – Federal Reserve Chairman Jerome Powell is taking to the House for another day of congressional testimony as monetary tightening continues from the Philippines to Norway and, most likely, Egypt and Mexico. Germany is sounding the alarm about natural gas supplies after Russia has shut down taps, and the effects of the Ukraine war are taking an ever-increasing toll on the French and German economies. Unemployment claims are due, as are earnings from Accenture (NYSE :), Darden Restaurants (NYSE :), Rite Aid (NYSE 🙂 and – after the clock – FedEx (NYSE :). And the government’s oil inventory data is delayed by technical problems. Here’s what you need to know in the financial markets on Thursday, June 23rd.

1. Powell returns to Congress; interest rate rises continue around the world

The Federal Reserve chairman goes to the House of Representatives on the second day of his regular testimony about the state of the U.S. economy. Powell told the Senate on Wednesday that they have risen, but that the central bank will still prioritize getting the highest inflation down in a generation.

Powell will take his place minutes after this week’s update on, which has been on a cautious trend, but nonetheless clearly upward in recent weeks.

Elsewhere, the tightening of monetary policy around the world continued, with Norway’s central bank at 50 basis points to 1.25%, more than expected. It also raised, but only by 25 basis points, while keeping the key policy rate stable. The central banks in and are expected to raise by 50 and 75 basis points, respectively, when they meet later.

2. Germany sounds gas alarm

hit a new three-month high as Germany’s natural gas supply, activating the second phase of a three-part plan to ensure security of supply.

The move formalizes other actions already taken by Berlin in recent days in response to a 60% cut in Russian gas supply for reasons the government sees as politically motivated. But the government will not immediately activate a provision that would have allowed supplies to pass on price increases prior to contractually permitted adjustments.

The news comes at a time when the EU will formally invite Ukraine – or what’s left of it – to join the bloc. Russian artillery attacks have intensified over the past week and have damaged two grain export terminals owned by Canadian and American companies in the port city of Mykolaiv. Ukrainian publications also reported that the Russians have dismantled and removed the largest photovoltaic plant in Ukraine, a 50 megawatt installation called TokMak.

Stocks set to open higher; Accenture, Darden, FedEx earnings are due

US stock markets are set to open moderately higher as investors adjust to the latest comment on the economic outlook from Powell and others.

At 06:15 AM ET (1015 GMT), 41 points rose, or 0.1%, while rising 0.3% and rising 0.7%. All three had fallen by between 0.1% and 0.2% after Powell’s first day of testimony.

Shares that are likely to be in focus include Accenture and Darden Restaurants, both of which report earnings before opening. They will provide an insight into current trends in business investment and consumer spending, respectively. FedEx, a watchdog in online shopping and the remote economy in general, reports after closing.

4. The European economy is further slowed down; UK midterm eyed

Business activity in the eurozone in June as rising inflation and rising interest rates took a bite out of demand and worsened the economic outlook.

S&P Global’s flash June – which combines data from the currency block’s service and manufacturing sectors – fell to 51.9 points, down from 54.8 in May, and below analyst estimates.

S&P also said the UK economy was “” in line with business expectations weakening to their lowest level in almost a year and a half. The latest in a series of weak UK data comes ahead of two by-elections later Thursday, which are expected to show a big swing against the ruling Conservative party.

5. Oil drop after sharp rise in API stocks, optimistic Iranian comments; EIA data delayed

Crude oil prices fell due to optimistic voices from Tehran about the prospect of an agreement that could see Western sanctions lifted, leveling the way for world markets for Iranian exports.

At 6:25 AM ET, futures had fallen 0.8% to $ 105.39 per share. barrel, while falling 0.7% to $ 110.98 per barrel. barrel.

There was more bad news for European fuel suppliers in the past when TotalEnergies (EPA 🙂 was forced to close its Donges refinery in France. Elsewhere, the U.S. government said the Energy Information Administration’s weekly inventory data will be delayed due to technical issues. Parallel data from the oil and gas industry body on Wednesday had shown the largest weekly increase in crude oil inventories in over two months.

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