European markets are set to open with a decline on Tuesday as investors wait with bated breath for Jerome Powell, the Chair of the Federal Reserve, to testify before congress and for the European Central Bank (ECB) to decide on interest rates.
Powell is scheduled to appear before the House Financial Services Committee on Wednesday and the Senate Banking Committee on Thursday. The American service sector activity data for February, due for release later today, might shed light on the economic state and prospects for interest rates.
Other important reports include factory orders, private sector employment, weekly unemployment claims, the U.S. trade deficit, and the Federal Reserve's Beige Book, all of which are expected to be published this week.
The U.S. Labor Department is also set to release the employment report on Friday. It is predicted that employment increased by 200,000 jobs in February, up from an increase of 353,000 jobs in January.
Asian markets generally experienced a decline after China declared a Gross Domestic Product growth target of 5%. The country also pledged to proceed with the transformation of their growth model amid various economic challenges.
Earlier, a private survey revealed a deceleration in China's services activity in February. Compiled Purchasing Managers' data from the euro zone and the U.K is expected to be released later today.
The European Central Bank is due to announce its monetary policy decision on Thursday, and investors anticipate clues on when it might begin to lower interest rates from their existing highs.
Gold remained stable in Asian trading, reaching a three-month high and settling above $2100 on Monday amid enhanced bets on a rate cut by the Federal Reserve in June.
The dollar stabilized while oil prices continued their overnight losses due to concerns about energy demand forecasts.
U.S. stocks slightly retreated from their record highs Monday night as uncertainty about interest rates future lead to a slight increase in Treasury yields.
European stocks witnessed a general decline on Monday as investors hoped for signals from China's yearly parliamentary meetings, the congressional testimony of Fed Chair Jerome Powell and the European Central Bank policy meeting.
Broadly, the pan-European STOXX 600 ended almost flat with a slight downward tilt. The German DAX slipped 0.1%, the U.K.'s FTSE 100 fell by 0.6%, while France's CAC 40 had a slight uptick of 0.3%.
