What a Trade Deal Means for the Rally

What’s in Today’s Report:

• What a U.S. – China Trade Deal Means for the Rally

Futures are down modestly and international shares were broadly lower overnight as the recent rally in global stocks is being digested after a mostly quiet start to the week.

The German GfK Consumer Climate report was in-line with estimates at 10.8 for the month of March which offers at least some mild hope for an EU economic rebound in Q1.

Today, investors are going to be primarily focused on Fed Chair Powell’s testimony before Congress that begins at 10:00 a.m. ET with his prepared remarks due to be released at 9:45 a.m. ET.

While Powell cannot take a much more dovish tone than he already has so far in 2019, it is important he at the very least stays as dovish, as any hawkish shifts in rhetoric could spook markets, especially given how far stocks have rallied in recent weeks.

There are a handful of economic releases that are also due out this morning that could move markets: Housing Starts (E: 1.255M), S&P CoreLogic Case-Shiller HPI (E: 0.4%), FHFA House Price Index (E: 0.4%), and Consumer Confidence (E: 125.0).