Market focused on the second half of Powell’s testimony overnight - ANZ

The market focused on the second half of Powell’s testimony overnight, where at one point ‘dovish’ tones on wage inflation drove a spike in risk assets. 

Key Quotes:

"However, this was unwound later, with comments that the Fed did not want to fall behind the curve on inflation. 

At the time of writing, major US bourses were lower, while Treasuries were a touch firmer. 

The USD was mixed. US data was firm, although it did not elicit a market reaction. 

Separately, it was a sea of red for European equities, in part due to missed earnings results, with the Euro Stoxx down 1.2% and DAX 2% lower. 

In commodities, while the CRB index was largely flat, oil prices were down over 1%, while gold was 0.7% lower."