Euro zone bond yields inch down ahead of inflation data

These comments suggest Powell is keen to continue normalising monetary policy in the USA and, in our view, all but ensures we’ll see at least three rate hikes this year should the economy continue to perform as it has done.

Powell acted much like his predecessor, but perhaps a little more upbeat, as the USA economy heats up.

“The negative Fed talk has had little impact on bonds or euro area peripherals”, analysts at Societe Generale (Swiss: 519928.SW – news) said in a note.

But in his remarks and in a monetary policy report issued to Congress by the Fed last week he also stuck close to a safe script, mentioning none of the new initiatives that some of his colleagues have pushed for, such as a review of the Fed’s system for managing inflation.

On the debt ceiling: “It is very important that the federal government and government generally be on a sustainable fiscal path, meaning as the Baby Boomer generation retires we’ll need to address the significant fiscal issues that are coming to us over time … and I think it’s important that Congress do that”.

The Fed has hinted in the minutes of previous meetings at a possible review of the inflation-target framework. Canon and Sony are rising nearly 1 percent each, while Panasonic is adding 0.2 percent.

Philip Shaw, chief economist at Investec in London said Powell’s testimony was unlikely to change from the one he delivered on Tuesday, putting the focus on the question and answer session.

“The market understands it”, he said.

A market-based approach doesn’t necessarily mean that Powell would enact interventionist policies to lift markets, Kudlow said.

In addition to worries about a potential clampdown on diesel vehicles in Germany, “the overall lack of growth in the European economy may also be weighing”, Gaffney said.

Last night sentiment was hit by optimist comments from US Federal Reserve chairman Jerome Powell that US growth remained on track.

With his bullish comments, “Powell made a not-so-subtle implication that the pace of interest rate increases may potentially be adjusted higher, though he refused to “pre-judge” Fed officials’ collective rate forecasts”.

Platinum fell nearly 1% to $973.50 an ounce, while palladium was flat at $1,042.47 an ounce.

The Toronto Stock Exchange’s S&P/TSX composite index was down 43.51 points to 15,671.15, led by losses in the materials, metals and bullion sectors. “Wages should increase at a faster pace as well”. He will appear before the Senate Banking Committee on Thursday.

Local data today showed annual net migration continued to slow in January, with fewer student and resident visa numbers, while the ANZ Business Outlook showed businesses are still pessimistic about the economic outlook.