European stocks set to open lower before Powell: Markets wrap

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Bitcoin rose 1.9% to $57 307.08.

European stocks look set to open lower as investors await Federal Reserve Chair Jerome Powell’s testimony to Congress for clues on the US interest-rate outlook.

“With the recent signs of softer growth and labor market, markets will closely watch if Powell gives any hints on the timing of rate cuts,” said Carol Kong, a strategist at Commonwealth Bank of Australia in Sydney. “Market pricing for a September cut can increase and the US dollar can fall further if Powell’s comments are perceived as dovish.”

Information technology shares were the largest contributors to gains in the MSCI Asia Pacific Index. The Nikkei 225 Stock Average climbed to a record, extending its advance for the year to more than 24%. In China, investors remain uncertain about the central bank’s new liquidity operations unveiled on Monday with policymakers having tightened their grip on interest rates and taken greater control over short-term borrowing costs. Investors read the move as if the People’s Bank of China just raised rates, triggering a bond market selloff. Market participants are also looking ahead to one of the country’s biggest annual policy meetings, approaching next week.

 

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