Global Markets Brace for Key Testimonies and Economic Data

Global markets are on edge as Fed Chair Jay Powell begins his semi-annual Congressional testimony, amid cooling inflation and a tight jobs market. Additionally, political uncertainties linger in both the U.S. and France. Market watchers keenly await economic data from several European countries.

Global markets are on edge today, with Washington overshadowing the European and global scenes. This is primarily due to Fed Chair Jay Powell's semi-annual Congressional testimony, which begins with an appearance before the Senate on Tuesday. While inflation concerns have eased, the labor market is feeling the effects of prolonged tight monetary policy.

Powell faces the challenge of balancing the risks of reigniting inflation without causing undue hardship for American workers. The testimony is followed by Thursday's consumer price index release, adding another layer of importance to his remarks.

On the political front, questions loom over the upcoming U.S. presidential election. Despite mounting speculation about his retirement, President Joe Biden remains in the race, with his odds improving among bookmakers. Additionally, the French political landscape is fragmented, with no clear majority, leading to potential political paralysis but averting feared fiscal policies from the far-right.

(With inputs from agencies.)