Investing.com - The head of the US Federal Reserve System by Jerome Powell will begin two-day speeches before Congress, while concerns with respect to inflation pushed the yield of 30-year bonds to new maxima. Lucid Motors will finally make a deal with the Spac company Churchill Capital Corp II (NYSE: CCX) Michael Klein, Bitcoin and Ethereum sharply fell sharply, but the pound sterling and the British market rose sharply after Boris Johnson chained the way out of quarantine. That's what you need to know about the financial market on Tuesday, February 23.
1. Jerome Powell and the "Great Threat" of Inflation
The head of the federal reserve system by Jerome Powell will begin a two-day report to the Congress on the state of the economy at the moment when concerns about inflation generate a strong sale of bonds with a long maturity.The appearance of Powell promises to become the main event of the week for world markets and the most clear indicator of whether the Fed will maintain its commitment to ensure that the economy "warmed up" to speed up and completing the recovery after a pandemic.
The repeated assurances of the Fed is that this year its policy will remain light, became one of the factors of the sharp growth of such assets, commodities, as well as others who indirectly make a bet on the devaluation of the dollar.
2. Sale cryptocurrency gains momentum
First of all, the bids on the devaluation of the dollar did cryptocurrency, which are having a sharp correction, while investors fix profits after their extreme growth over the past three months.
The price of Bitcoin per night fell another 13.6% to $ 47410 on the BitFinex stock exchange. It is now 20% lower compared to his peak of two-day presumption, although since the beginning of the year it rose by more than two thirds due to the rapidly expanding range of ways to use this asset.
The sale was triggered last weekend TESLA CEO (NASDAQ: TSLA) Ilona Mask, which noted that Bitcoin and Ethereum prices seem to be "rather high" after recent jumps. Ethereum fell overnight by 19.5% to $ 1463.
3. HOME DEPOT (NYSE: HD) and Medtronic reports are expected.
By 06:30 in the morning Eastern Time (11:30 GRINVICHI) Dow Jones futures fell 60 points, or 0.2%, while futures on S & P 500 decreased by 0.6%, and futures on NASDAQ 100 fell by 1.5%.Among the shares that will probably be the focus of today, it is Tesla (NASDAQ: TSLA) and Churchill Capital IV - a SPAC company, which on the eve of officially announced the conditions of its merger with Lucid Motors, Tesla's competitor. Tesla lost 8.6% on Monday due to the emergence of its first real competitor in the United States in the segment of luxury electric vehicles.
HOME DEPOT (NYSE: HD) will be exposed to a closer study, the shares of which fell by 1.5% on the premark after the company stated that it could not say whether 2021 would be as strong as 2020 when she survived the boom Home improvement caused by an epidemic. Medical MEDTronic Medical Equipment (NYSE: MDT) also reported to discovery.
4. UK assets have grown sharply, as Johnson has output from quarantine regime
The pound sterling reached the highest level for the year in relation to the euro and the highest level since April 2018 in relation to the dollar after the Prime Minister of the Country Boris Johnson chained "cautious and irreversible," he said, the way out of quarantine to July.
The UK market also grew up in response to Johnson's television on Monday evening. FTSE 250, index of companies with medium capitalization, which concentrates on the internal market-oriented promotions, has grown by almost 1%, while FTSE 100 also exceeded other European markets, which on Monday followed the overall downstream trajectory with Wall Street.
The optimistic performance of Johnson eclipsed from the labor market on Tuesday morning, which showed that unemployment in the country reached its peak in December for five years, and employment decreased by another 114 thousand jobs over the past three months.
5. Rotation in the commercial rally
Agricultural products caught up with industrial goods at night auction on the feeling of that, non-ferrous metals are moving too far and quickly.
Coffee, oats, raw rice and American soybean surpassed copper, aluminum and zinc due to confidence in the large-scale growth of consumer purchasing power.
Meanwhile, crude oil futures rolled back from another 13-month high, which they have achieved against the background of reports that Goldman Sachs analysts expect rising prices for it to $ 70 per barrel. By 06:30 in the morning East time (11:30 GRINVICH), WTI oil futures rose by 0.9% to $ 62.26 per barrel, and Brent oil raised in price by 0.8% to $ 64.89 per barrel. The American Oil Institute (API) will publish a weekly assessment of oil reserves in the United States at 16:30 east (21:30 GRINVICH).
Author Jeffrey Smith
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