The Fed Take The Limelight – Europe Market Wrap

US stocks are set to scale yet another all-time high Tuesday as investors await Federal Reserve Chair Jerome Powell’s testimony to Congress for clues on the US interest-rate outlook.

Futures on the S&P 500 gained after the benchmark set its 35th record for the year, with the second-quarter reporting season about to get underway. Contracts on the rate-sensitive Nasdaq 100 were also higher before Powell’s address.

Investors will be keying into any hints from the Fed chair about how soon policymakers will be in a position to cut interest rates. A long- awaited pivot to easier policy would provide investors sitting on a record $6 trillion of money-market with an incentive to buy bonds and other assets.

Powell is also likely to face pointed questions over US plans to force Wall Street lenders to set aside significantly more capital. Reuters reported that regulators are considering a change to its calculations that could save the country’s eight largest banks combined billions of dollars.

European stocks dropped, as wariness grew over French government spending following the left’s resurgence in the weekend election.