Top 5 Things to Know in the Market on Wednesday

Investing.com - U.S. Federal Reserve Chairman Jerome Powell will testify in Congress against a background of renewed trade uncertainty after U.S. President Donald Trump dampened hopes for a breakthrough in the U.S.-China trade war. Meanwhile, the first public hearings in Trump’s impeachment inquiry get underway and investors will get the latest U.S. inflation figures and a look at U.S. oil stockpiles after the International Energy Agency said it expects global oil demand growth to slow from 2025. Here's what you need to know in financial markets on Wednesday, 13th November.

Powell testimony

Powell is set to testify on the economic outlook before the Congressional Joint Economic Committee in a hearing starting at 11:00 AM ET (16:00 GMT). He is expected to reiterate that monetary policy is on pause for the remainder of 2019, following three consecutive rate cuts this year aimed at offsetting the effects of the global growth slowdown brought on by the U.S.-China trade war.

Powell’s testimony comes a day after Trump said a trade deal with China was “close” but threatened to "substantially" increase tariffs if no deal was reached. He also took a swipe at European Union trade policies, rattling investors who were expecting some breakthrough, or even some new signal, on trade.

Trump also repeated his criticism of the Fed, blaming it for the slowdown in the economy and for failing to cut interest rates deeply enough.

Public hearings in Trump impeachment inquiry get underway

Ahead of Powell’s testimony, the House of Representatives will convene the first public hearings in Trump's impeachment inquiry at 10:00 AM ET (15:00 GMT). They will be the first impeachment hearings to be held in public in 20 years.

The probe centers on whether Trump pressured Ukraine to investigate Democratic presidential contender Joe Biden and his son, Hunter Biden and any reaction by the president could be significant.

U.S. futures indicate lower open; Cisco earnings due

U.S. stock market futures pointed to a lower open, with Dow futures shedding more than 100 points, while S&P 500 futures and Nasdaq 100 futures were also down amid trade war jitters.

European shares retreated from four-year highs earlier, while concerns that intensifying unrest in Hong Kong could prompt a Chinese crackdown pushed Hong Kong shares 2% lower overnight and weighed on markets across Asia.

Cisco Systems (NASDAQ:CSCO) reports fiscal first-quarter results after the closing bell Wednesday against a challenging backdrop that includes concerns that weakness in the global economy and softening cloud demand may weigh on performance. Other reports on Wednesday include Hewlett Packard Enterprise (NYSE:HPE) and Foxconn (TW:2354).

U.S. inflation data due

U.S. inflation data for October is due at 8:30 AM ET (13:30 GMT), with economists expecting the consumer price index to rise 0.3%, up from 0.1% in September, while the core CPI , which excludes volatile food and energy prices, is forecast to rise 0.2% from 0.1% a month earlier.

Year-over-year CPI growth is seen staying at 1.7% with core CPI edging up to 2.4%.

In the U.K., data earlier showed that inflation fell to its lowest level in nearly three years last month amid a cap on energy prices. At 1.5%, inflation has now moved further below the Bank of England’s 2% target, which could increase the likelihood of interest rate cuts.

In the Eurozone, data showed that industrial production increased by 0.1% in September. It was the second consecutive month of expansion, indicating that a downturn in the bloc may be moderating.

Global oil demand expected to slow from 2025 IEA says

Global oil demand growth is expected to slow from 2025 as fuel efficiency improves and the use of electrified vehicles increases but is unlikely to peak in the next two decades, the International Energy Agency (IEA) said on Wednesday.

The Paris-based IEA, which advises Western governments on energy policy, said in its annual World Energy Outlook for the period to 2040 that demand growth would continue to increase even though there would be a marked slowdown in the 2030s.

The American Petroleum Institute was to release its weekly report on oil inventories later Wednesday, a day later than usual because of Monday's Veterans Day holiday.

--Reuters contributed to this report

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