All eyes on Powell’s semiannual testimony | MarketTalk: What’s up today? | Swissquote

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Most European indices including the British big caps closed Monday’s session in the negative. The French CAC 40 underperformed its peers but the French yields ease, the yield spread with Germany narrowed and the euro was bid. We could see the EURUSD gain further positive momentum this week, especially if Federal Reserve (Fed) President Jerome Powell delivers a dovish speech before the congress between today and tomorrow, and the latest CPI update from the US comes in sufficiently soft.
The S&P500 and Nasdaq 100 hit fresh records yesterday and their journey is increasingly diverging from the economic data. The forecast for 12-month forward earnings for the S&P500 stands at an all-time high according to Bloomberg, the S&P500 companies are expected to deliver more than 9% EPS growth in Q2 and this number is expected to rise to double-digit territory later this year. Even the non-tech sectors are seen posting a positive growth. But Atlanta Fed’s GDPNow index predicts that the US economy may have grown just 1.5% in Q2, down from above 3% at the last quarter of last year and 5% the quarter before that. Something must give.
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